ITC share price retraces from 52-week high. Good time to buy or accumulate?

ITC share price: After climbing to its new 52-week highs on successive Wednesday and Thursday sessions, ITC shares have retraced from its recent highs and quoting below ₹300 apiece levels. Shares of ITC has been in uptrend since last week of February 2022. According to stock market experts, ITC shares are still in uptrend and today's fall should be seen as minor profit booking as the stock had been rallying for last two sessions.

Stock market experts advised investors to wait for some time and start buying and accumulating ITC stocks in ₹285 to ₹290 apiece range for short term target of ₹340 per share levels. They said that the stock is facing minor resistance and after breaching this resistance, ITC share price may go up to ₹325 and ₹340 apiece levels respectively in near to short term time horizon.

Highlighting the fundamentals that may fuel ITC share price rally again, Punit Patni, Equity Research Analyst at Swastika Investmart said, "ITC Ltd. has proved its mettle and has been one of the best performers this year rising 36 per cent compared to a negative 5.50 per cent return of the Nifty 50. This outperformance can be attributed to its robust cash flows, virtually monopolistic cigarettes business, growing other segments like FMCG, and rising investors’ inclination towards value stocks. The stock has been testing investor's patience for the last 10 years and has just managed to give a meager ~6% CAGR in the last decade, the reason being rising ESG-based trends in investing, high reliance on the cigarette business for cash and profit generation, long gestation period in the FMCG business. However, times have changed and investors have realized the importance of cash flows in current turbulent times, and we believe that even after the recent outperformance more steam is left in the stock."

ITC share price outlook

Advising ITC shareholders to hold the counter, Ravi Singhal, CEO at GCL Securities said, "ITC shares are in uptrend and it may continue to rise in near to short term. This stock is standing at immediate support at ₹285 whereas it is standing at strong support of ₹270. So, those who have this stock in their portfolio should continue to hold the stock while fresh investors are advised to buy the stock in ₹285 to ₹290 range. They should accumulate the stock if it breaches ₹285 support and goes around ₹275 levels. However, one must maintain a strict stop loss at ₹265 levels."

ITC share price target

Echoing with Ravi Singhal's views, Punit Patni of Swastika Investmart said, "ITC share price is in strong bullish momentum, However, ₹305-310 is an immediate resistance area where we can expect some profit booking; above this, we can expect a move towards ₹325 levels, which is a crucial hurdle. On the downside, ₹288/282 are immediate and strong support levels while ₹275-270 will act as floor area at any profit booking."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.