Stock in Focus: ITC moving against tide; analysts see potential, recommend buy for these targets

Stocks in Focus: ITC Limited shares were trading against the tide on Friday and look strong for a further upside when markets witness a reversal, technical analyst Nilesh Jain tells Zee Business Web. The ITC stock ended at Rs 266.75 on the BSE and were up nearly 1.5 from the last closing price on Thursday.

The stock is on course to surpass its 52-week highs of Rs 273, says this analyst.

Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking.said that the stock has stayed away from the market negativity and is positioned well on the charts. The stock has a 16 per cent upside over the positional term, the AVP said.

The stock is moving above its 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

ITC will announce its Q4 Results 2022 on 18 May.

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The stock has outperformed the BSE Sensex over a 12-month period and Year-to-Date (YTD) period giving returns of nearly 37 per cent and 22 per cent respectively.

In contrast, BSE Sensex has given 12 per cent returns in a 1-year period while negative returns of nearly 6 per cent on the YTD basis. The information has been sourced from BSE.

Jain recommended a buy in ITC share for short term target price of Rs 285. Over the positional term, he puts the target of Rs 310.

Buying is advised in a staggered manner, Jain said adding that 50 per cent of the potential investment can be made at current price while the remaining on decline. The buying range is between Rs 255-260. He puts the stop loss at Rs 240.

Another analyst, Anuj Gupta is also bullish on the company, which has varied business interests including tobacco, FMCG, hotels, paper and others.

He also suggests a buy on decline between Rs 245 and Rs 250. He puts the target of Rs 300 with a stop loss of Rs 220.

Gupta is Vice President Research at IIFL securities.

Markets today ended in the red. The benchmark indices BSE Sensex and Nifty were down nearly 1.6 per cent. While, the former closed at 54,835.58 or 866 points lower from Thursday closing level, the latter settled down by 271 points at 16411.25.