ITC’s share price rose 14% in one month. What is Driving Stock – Explained

Speaking on the technical reasons behind ITC shares climbing to new 52-week high; Rohit Singre, AVP – Bonanza Portfolio said, “ITC share price Rally has helped the stock deliver fresh breakouts 263 each level. It is now in a bullish trend and may go up The 300 level is now placed at this level as its immediate hurdle. Those who have this stock in their portfolio are advised to continue with this stock further.”

Brokerage firm Edelweiss Wealth Research Report has given ‘buy’ tag to ITC shares, which is expected to lead the stock up. 450 each level over a long period.

Fundamentals that could fuel the ITC share price rally; We expect cigarette volumes to revive at a CAGR of 5 per cent during FY 2011-21 as against a CAGR of 1 per cent during FY 2011-21; EBITDA margin of FMCG will rise to high single digits; and to revive hotel, paperboard and agri-commodities businesses. This will lead to an income CAGR of 12 per cent in FY22-24E as compared to only 7 per cent in the last five years.”

Highlighting the Bull Trend as seen on the chart pattern of ITC share price; The Edelweiss Wealth Research report said, “A strong price rally on the ratio chart of ITC/FMCG suggests a strong out-performance by the stock in the region. Prices on the ratio chart are pointing to a strong start. suggests base formation. Out-performance by the stock. A possible formation of an inverted head and shoulders pattern on the weekly chart and a time series analysis on the quarterly chart indicates a change in trend and resurgence of the Super Bull cycle. The ratio chart on the P&F platform indicates a strong base formation over two years, the report said.

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