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ITC can rally 30% to Rs 300 levels in the days ahead, charts suggest

ITC hit a seven-month high of Rs 233.30, up 8 per cent on the BSE in intra-day trade on Thursday. The move comes on the expectation of a likely improvement in business outlook. The stock is trading at its highest level since February 2021. It had touched a 52-week high of Rs 239.15 on February 9, 2021. READ ABOUT IT HERE In past one year, the stock has underperformed the market by gaining 28 per cent, as compared to 50 per cent surged in the S&P BSE Sensex. In past three years, ITC share price dipped 25 per cent, against 55 per cent rally in the benchmark index. That said, technica.....
ITC hit a seven-month high of Rs 233.30, up 8 per cent on the BSE in intra-day trade on Thursday. The move comes on the expectation of a likely improvement in business outlook. The stock is trading at its highest level since February 2021. It had touched a 52-week high of Rs 239.15 on February 9, 2021. READ ABOUT IT HERE

In past one year, the stock has underperformed the market by gaining 28 per cent, as compared to 50 per cent surged in the S&P BSE Sensex. In past three years, ITC share price dipped 25 per cent, against 55 per cent rally in the benchmark index.

That said, technical charts suggest the counter can move up further in the days ahead. Here's the technical set up.

ITC Ltd (ITC)

Outlook: The stock needs to shows stability at the current levels for a rally towards Rs 300

The strong up move on Thursday with “above average volume” reflects a firm underneath strength in the shares of ITC Ltd. This positive move has not only conquered the resistance of Rs 220 and Rs 230, but hints toward defeating the selling pressure likely to emerge around Rs 245 and Rs 255 levels, which is almost 6 to 10 per cent rise from current levels.

The overall price structure depicts major support of the 200-day moving average (DMA). And as long as ITC defends the 200-DMA, currently positioned at Rs 209, the short-to-medium term outlook stays highly bullish. One can expect a rally that could cross Rs 245 and Rs 255 and then trend in the direction of the Rs 300-mark.

Hereon, if ITC trades with significant volume on consecutive sessions, the possible stability at major levels become very realistic, rather than drifting downward or trading sideways with market participants getting anxious about its existence, which the stock showed in the recent past. CLICK HERE FOR THE CHART



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