ITC shares may surge past ₹307 target
Shares of ITC may be poised for a sharp rally if the stock breaks past a key technical level. The company’s shares have been consolidating below ₹300, but a sustained move above ₹307 could open the door for gains up to ₹340-350. ITC, a diversified conglomerate with interests spanning fast-moving consumer goods (FMCG), hotels, paperboards, and agri-business, has historically exhibited resilience during periods of volatility, though its cigarette segment remains sensitive to tax changes.
Technical levels to watch
Pradeep Haldar, founder and CEO of PHD Capital, said the stock is still forming a base below ₹300. While the overall chart suggests potential, a full trend reversal hasn’t been confirmed yet. For traders with a two-month horizon, ₹307 is the critical level to monitor.
Haldar noted that the stock is currently in a consolidation phase. The base-building process could take another one to two quarters, so patience is needed before expecting a fresh rally. He recommended a stop-loss at ₹255 for traders. If the stock fails to hold above ₹307, consolidation may drag on longer. But if it breaks and sustains above that mark, the next target would be ₹340-350.
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GST hike weighed on sentiment
The pressure on ITC’s stock stems partly from an increase in GST on cigarettes. The tax hike led to sustained selling, and its effects are still visible in the stock’s price action. Haldar noted that the base either hasn’t been confirmed yet or is still forming, making a decisive breakout necessary for a new uptrend.
Haldar remains optimistic about the company’s fundamentals despite the regulatory challenges. “This is a strong business. There’s no need to panic,” he said. For existing investors, his advice is to hold, while new momentum will depend on the stock’s ability to cross ₹307.
The stock’s performance in the coming weeks will hinge on whether it can break out of its current range. If it does, the next resistance level lies around ₹350, while failure to hold above ₹307 could extend the consolidation phase.
