Recommending the stock as its top pick for the month, brokerage house Anand Rathi highlighted that ITC shares have been under pressure since quiet some time, but at this juncture the stock is trading near its crucial support. Previously, the stock turned from this level and a rally towards ₹240 was seen.
“On daily chart there is bullish WOLFE WAVE pattern which is looking lucrative. Thus we advise traders to go long in the stock with a stop loss of ₹208,” the brokerage said. Anand Rathi has Buy recommendation on ITC shares with a target price of ₹250 and time frame of one month.
ITC has a diversified presence across industries such as FMCG, hotels, packaging, paperboards, specialty papers and agribusiness. Shares of ITC have been somewhat of a dull performer amid the recent bull market rally. The scrip has remained in a rangebound trend and is up around just 3% this year as compared to around 21% rise in benchmark Sensex.
The net profit of the country’s largest cigarette maker rose to ₹3,697 crore in the three months ended 30 September from ₹3,252.6 crore in the year earlier, as its consumer goods business benefited from a rebound in out-of-home consumption and cigarette sales reported a faster-than-expected recovery.
The company, which also sells Aashirvaad wheat flour and Savlon soaps, standalone revenue from operations grew 12% to ₹13,553.5 crore in the September quarter from ₹12,103.7 crore a year earlier.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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