Thursday, 22 January 2015

Technical Outlook Of ITC







ITC (CMP:353) was down heavily yesterday on the back of the dismal result, specially from its Cigarette business (high taxes is hurting sales).

Looking at the chart, 345-343 is a strong positional support zone & below that comes 331 zone.

Immediate resistance 366 & above that 373-379 should be the short term target.

Medium term target should be 400-418 & long term target may be around 438-445.

But at first, it has to sustain above 366 & then above 400 (forthcoming budget may bring more clarity for ITC -Cigarette products). 

After result, Goldman Sachs, Bofa ML retain its long term target (after some EPS downgrade) in the range of 420-440 on the back of long term demand potential and better returns of its products (specially FMCG). Hotel business may also contribute significantly going forward.


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