ITC share price hits life-time high after budget. Can it rise further?
2 min read . Updated: 02 Feb 2023, 01:24 PM IST
Premium- ITC share price may witness profit-booking as the stock has entered the overbought zone on chart pattern, say experts
Stock market today: ITC share price continued its uptrend for third straight session and extended its post-budget gains further. While deepening its Wednesday gains, ITC share price today climbed to new life-time high of ₹384.70 apiece levels, logging more than 6 per cent rise intraday rise in early morning session.
According to stock market experts, ITC shares are rising as finance minister Nirmala Sitharaman announced to increase agriculture credit target by more than 11 per cent on year-on-year basis in budget 2023. This is expected to benefit agriculture-driven stocks like ITC. They said that the stock is in overbought zone on chart pattern and profit booking may trigger any time. So, one should book profit in the scrip and wait for the stock to retrace from current highs as fundamentals of the stock is still strong.
Speaking on why ITC share price today hit new highs, Anuj Gupta, Vice President — Research at IIFL Securities said, "The Government of India (GoI) has announced to increase its agriculture credit exposure by over 11 per cent in FY24 to ₹20 lakh crore against ₹18 lakh crore in the financial year 2022-23. This is expected to push agriculture-driven stocks, which includes ITC shares. Market bulls having known to this benefit post-budget thronged at the ITC stock on Wednesday and on Thursday session, which led to the stock climbing to life-time high today."
Advising ITC shareholders to book profit, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi said, "Though at the current juncture, ITC is looking lucrative one needs to pay attention to the short-term return of 18% (In the Last month's time) which is very unusual for ITC. Also, on a daily scale, ITC has formed a bearish crab pattern which is a matter of concern. From an Indicator point of view: Daily MACD is overstretched along with DAILY RSI is extremely overbought at 83 approx. thus hinting towards possible profit booking in the coming few sessions."
Anand Rathi expert advised positional investors from taking any fresh position at current levels. He asked ITC shareholders to book a profit between ₹378 to ₹385 apiece levels, if it tests these levels again.
However, Anuj Gupta of IIFL Securities said that long term positional investors can enter on 5-6 per cent dip from current levels as fundamentals of the stock have strong after the budget 2023.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
