ITC nears October 2021 high. Will it see selling pressure this time?

Analysts said the stock has potential to go as high as Rs 280-285 levels in the short term. They see support for the index around Rs 240-odd levels.

Mehul Kothari – AVP – Technical Research at Anand Rathi Shares and Stock Brokers said his brokerage has had an aggressive bullish view on ITC for the past two months. This was when the stock quoted at Rs 210 a piece.

“In the past four weeks, ITC has surged to Rs 255-mark. At this juncture it is trading near its previous closing swing high of Rs 259. This high of Rs 259 will be of great importance since a close above the same would confirm a bullish formation, which resembles inverse Head & Shoulder pattern,” Kothari said.

In that scenario, he said, the target for the stock would come around Rs 300-330 levels. “For the short term, above Rs 259, the stock can surge towards Rs 280 mark while the intermediate supports are placed at Rs 240 and Rs 224, ” he said.

The stock hit a 52-week high of Rs 265.30 on October 18, 2021, before falling to a low of Rs 207 last month. On Thursday, the stock was up for the third straight session, making an intraday high of Rs 256.45. it needed another 3.45 per cent to revisit its one-year high level.

Amit Trivedi from YES Securities said that the index has broken above its consolidation range and is up 18 per cent so far this month.

“The recent swift up move has turned the medium term outlook positive. A mild consolidation is possible to digest recent gains and a throwback till Rs 240-235 should be considered as a buying opportunity. Eventually the stock is expected to inch higher till Rs 278-285 levels,” Trivedi said.