ITC share price has reached a 52-week high. should you buy

According to stock market experts, the sudden rally in the counter today has been as expected as it was undervalued for a long time. Experts believe that the company’s fundamentals are very strong and its revenues are expected to move north, given the unlocked theme.

Speaking on ITC Share Price Rally; Avinash Gorakshakar, Head of Research, Profitmart Securities said, “ITC shares were highly undervalued as they did not participate in the market rally after the second wave of COVID-19. Hence, this rally should be considered as a stock specific trading strategy. Market investors who are investing in quality stocks available at a discounted price. But, the stock has not been able to sustain higher levels. It has been limited intermittently. ₹200 to ₹240 for the last 10 months. New buyers should wait and see if the stock manages to break its juncture and remains at new highs.”

Investment strategy in respect of ITC shares unveiled; Ravi Singhal, Vice Chairman, GCL Securities said, “The market is eagerly waiting for a fresh breakout. ₹230 based on closing. If ITC stock closes up ₹Rs 230 today, then only you can buy this counter for a target of 3 months ₹maintain stop loss at 270 ₹224.” He added that there is not much trigger in the market. This rise in the counter is mainly due to the stock at discounted price as compared to its peers like Nestle, Britannia etc. He added that the major trigger the market is expecting is Announcement of demerger, which is expected to happen in the company.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.