Chart Check: Time to buy? ITC likely to surpass 500 levels and hit fresh record highs in 3 months
ITC Ltd, part of the S&P BSE Sensex index, has underperformed the benchmark index but is seen consolidating around the breakout area of the cup and handle pattern on the daily charts.
The level of Rs 450 is acting as a crucial support for the ITC stock price and a bounce back could be possible around these levels as various technical parameters suggest that bulls are here to stay.
The stock is down by about 0.5% in a week compared to over 2% gain seen in the S&P BSE Sensex in the same period. It rose more than 4% in a month compared to 9% gain seen in the benchmark index.
Short term traders can look to buy the stock now or on dips for a possible target above 500 once Rs 499 is breached – which is the July record high.
The stock hit a record high of Rs 499 on 24 July 2023 but it failed to hold on to the momentum.
The stock found support around Rs 450 which is also the neckline area of the Cup and Handle pattern.
A close above 500 could take the stock towards 540 levels, suggest experts. However, the time horizon could be around 3 months.
“ITC stock has recently retraced to 38.20% when considering the low of 2023 and the high of 2023.
Post-retracement, it exhibited a notable breakout above the cup and handle candlestick pattern, supported by above-average volume and a long green candle,” Suraj Bathija, Founder & CSO at AlgoBulls, said.
Furthermore, both daily and weekly Relative Strength Index (RSI) levels are higher than 60, indicating robust upward momentum. The weekly RSI consistently remained above 50, underscoring a strong uptrend throughout the year 2023.
“The technical signals, ITC has consistently outperformed the Nifty 50 index.
