ITC share price has reached a new 52-week high. What is driving this FMCG stock?

According to Share Market According to experts, ITC shares are in a bullish trend due to the fall in commodity prices and the unlock theme. He said the market is expecting a better footfall for the company’s hospitality and cigarette business. He added that this is the icing on the cake for the co-company as its FMCG business is already generating decent earnings due to easing commodity prices. Experts say that the stock is in an uptrend on the chart pattern and may go up 340 each level in the short term.

Speaking on the reasons driving the ITC share price rally, Ravi Singhal, CEO, GCL Securities said, “ITC shares are rising as the margins of the company are expected to improve due to reduction in commodity prices. The company should get better footfalls. It is expected to take hospitality and cigarette business as the unlocked theme.” Ravi Singhal of GCL Securities said that the market is in discussion about disinvestment in ITC, which is also helping the stock to climb. However, he added that there has not been a single signal from the company in this regard and hence, one should not take any position merely because of this market turmoil.

Anticipating further upside in ITC counter, Sumeet Bagdia, Executive Director, Choice Broking said, “The stock is showing an uptrend and one can buy and hold the stock for short term target. 330 to 340 each level while maintaining stop loss 300 per share level. Those having this stock in their portfolio are advised to upgrade their stop loss Stop for an immediate target of 300 more 340 levels.”

After the start of the new year 2022, the share price of ITC has gained momentum. In YTD time, this FMCG stock has risen from approx. from 220 315 levels, registering an increase of about 45 percent over the period.

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

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