Daily Analysis on

ITC

ITC – Daily Technical Analysis Price Action: ITC closed at ₹406.30, after opening weak at ₹413 and touching a low of ₹405, showing heavy selling pressure. Trend: The stock is trading below key moving averages (20, 50, 100 DMA), suggesting weakness. RSI (14): 36.38 – approaching the oversold zone, indicating limited downside but still weak momentum. MACD: Negative crossover continues, signaling bearishness. Support Levels: ₹400 (immediate), followed by ₹390. Resistance Levels: ₹415–₹420 zone is strong resistance; upside sustainable only above ₹425. Why ITC fell today? Market-wide pressure: FMCG sector under selling pressure due to weak rural & urban consumption data. Profit booking: Investors booked profits after ITC’s recent rallies. Muted growth outlook: Concerns about slower volume growth in cigarettes & FMCG ahead of quarterly results. FII activity: FIIs reducing exposure to defensives, shifting towards banking & infra. GST-related news: Market speculation around a possible increase in GST/taxation on tobacco products created additional nervousness, adding to the selling pressure in ITC. Technical View: On the daily chart, ITC opened at ₹413, touched the same as its day’s high, made a low of ₹405, and closed at ₹406.30, showing strong selling pressure throughout the session. The stock is holding above its crucial support at ₹400, while resistance is placed near the 14-day EMA around ₹415. Momentum indicators reflect weakness, but if the stock sustains above ₹415, a short-term bounce towards ₹425–₹430 is possible. Overall, the structure remains stable, and buy-on-dips strategy looks favorable for long-term investors.