ITC Breaks Out of Consolidation Pattern; Stock Surges Over 2%

The Indian benchmark indices showcased a positive trend, with Sensex and Nifty rising by 0.38% and 0.31%, respectively. On Tuesday, the NSE benchmark surpassed the 24,400 mark, achieving a new all-time high of 24,401.20, slightly above its previous peak of 24,401 recorded on July 04, 2024.

Key Contributor: ITC

One of the major contributors to Nifty’s gains was ITC. ITC added a significant 22 points to the index, with its shares trading up by 2.27% on Tuesday. This upward movement in ITC’s stock was a key factor in the overall market performance.

Technical Analysis of ITC

Technically, ITC’s stock has shown strong performance as it broke out of a 49-day consolidation phase. On Monday, the stock recorded higher volumes, and this trend continued into Tuesday with volumes picking up rapidly in the first half of the trading session. The stock managed to close above the 50% retracement level of its prior fall and is trading above all key moving averages, with a 3.11% rise above the 50-day moving average (DMA). The moving average ribbon indicates an uptrend, and the Bollinger bands have begun to expand, signaling increased volatility. The MACD indicator has moved above the zero line, indicating bullish momentum, while the Relative Strength Index (RSI) has shifted into the bullish zone. Both the KST and Stochastic RSI indicators are in a bullish setup, and the Elder Impulse System has formed a strong bullish bar. Additionally, the stock closed above the Anchored VWAP resistance. In summary, ITC’s stock has registered a robust bullish breakout, supported by multiple technical indicators.

Performance Overview

Over the last three months, ITC’s share price has gained 6.30%. Despite underperforming the frontline gauge in 2024, with a nearly 2% decline, the stock has delivered impressive multi-bagger returns of 125.08% over the past three years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.