Chart Check: 25% returns in 6 months! This FMCG stock is on buyers’ radar


ITC, part of diversified FMCG space, rose 25 per cent in about 6 months compared to over 9 per cent fall seen in the Nifty50, and the momentum is likely to continue in the near-term, suggest experts.

The S&P BSE Sensex stock hit a 52-week high of Rs 282 on 20 May 2022 but failed to hold on to the momentum amid muted global cues. It bounced back after hitting a low of Rs 258 last week.

The stock with a market capitalization of more than Rs 3.2 lakh crore is trading near crucial support levels which could trigger a bounce back. It is also trading near the neckline of a falling trendline on the daily charts.



A close above Rs 268-270 will confirm the breakout that could take the stock towards its 52-week high levels of Rs 280-284, suggest experts in the next 4-6 weeks. The stock closed 1.7 per cent lower at Rs 265 on the BSE on 22 June 2022. is one of India’s foremost private sector companies and has a diversified presence in FMCG, hotels, packaging, paperboards and specialty papers, and agri-business.

Last month, the FMCG major reported a 11.80 per cent year-on-year (YoY) rise in standalone net profit at Rs 4,190.96 crore for the March quarter compared to Rs 3,748.42 crore in the same quarter last year.

On the price front, the stock is trading above the 5-DMA but below 10,20,30 and 50-DMA. It is trading above the crucial long-term moving averages of 100, and 200-DMA which is a positive sign for the bulls.

Agencies

On the technical front, the reading of the Relative Strength Index or the RSI stood at 48.5. RSI below 30 is considered oversold and if the reading is above 70 then it is considered overbought.

The average broker target according to Trendlyne database stands at Rs 319 which translates into an upside of over 20 per cent from Rs 265 recorded on 22 June. The consensus recommendation from 29 analyzes for ITC. is strong buy.

“The stock after a recent breakout has been consolidating in a sideways trend and showing signs of a breakout from a falling trend line pattern,” Kunal Shah, Senior Technical and Derivative Analyst at

said.

“The RSI indicator has given positive crossover on the daily chart confirming the internal strength of the stock. The stock is trading well above its short-term moving averages and is likely to test its all-time high levels, ”he added.

Shah recommends traders to buy the stock now for an upside target of Rs 280-284 with a stop loss below Rs 260. The holding period could be 4-6 weeks.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of Economic Times)


Original Article reposted fromSource link

Disclaimer: The website autopost contents from credible news sources and we are not the original creators. If we Have added some content that belongs to you or your organization by mistake, We are sorry for that. We apologize for that and assure you that this won’t be repeated in future. If you are the rightful owner of the content used in our Website, please mail us with your Name, Organization Name, Contact Details, Copyright infringing URL and Copyright Proof (URL or Legal Document) aT spacksdigital @ gmail.com

I assure you that, I will remove the infringing content Within 48 Hours.

Leave a Reply

Your email address will not be published.

Business

IKEA Israel to hike prices despite 12% customs cut on furniture

Furniture and home accessories retail chain IKEA has revised prices of the hundreds of products in its catalog in Israel by 4% -5% from August. The company said, “Despite the rise in prices in IKEA worldwide at the start of the year, IKEA Israel kept the prices of products unchanged. Now, due to additional price […]

Read More
Business

PGCIL board okays proposals to raise Rs 11,000 crore

The board of state-owned Power Grid Corporation of India Ltd (PGCIL) on Wednesday approved two proposals to raise up to Rs 11,000 crore through the issuance of bonds and term loans Proposals to raise Rs 11,000 crore have been approved at a meeting of the board of directors on Wednesday, July 6, 2022, a BSE […]

Read More
Business

Three shots needed for full vaccination

PHILIPPINE STAR / WALTER BOLLOZOS President Ferdinand R. Marcos, Jr. has agreed to a proposal by health authorities to consider one as having been fully vaccinated only if they have been injected with at least one booster shot, according to local state media. “The move was also in preparation for the impending full implementation of […]

Read More