ITC Base formation Breakout has happened on last Friday(27-Jul-2018) with very High Volume. So the stock is now ready to catch with its Peer companies like HUL/Godrej CP etc.
Buy - Current Levels
Target- 320/330
Stop Loss- 290
Reason Supporting Breakout-
Technical-
-Breakout of a Base formation which suggest accumulation of shares by Smart investors in last one year which creates low supply for the stock and after the better results demand for the stock is increasing which was confirmed by Gap up opening with Price Volume breakout and also about 300+cr. of block deals on last friday.
Fundamentals-
After The last BJP leg Govt. budget focusing on rural based consumption many of the FMCG companies gained except ITC due to some concern over its cigarette business(GST impact), but last results had confirmed that company is able to stabilized its cigarette business and shown good growth in other segments which is making ITC a candidate for Re-rating.
Buy - Current Levels
Target- 320/330
Stop Loss- 290
Reason Supporting Breakout-
Technical-
-Breakout of a Base formation which suggest accumulation of shares by Smart investors in last one year which creates low supply for the stock and after the better results demand for the stock is increasing which was confirmed by Gap up opening with Price Volume breakout and also about 300+cr. of block deals on last friday.
Fundamentals-
After The last BJP leg Govt. budget focusing on rural based consumption many of the FMCG companies gained except ITC due to some concern over its cigarette business(GST impact), but last results had confirmed that company is able to stabilized its cigarette business and shown good growth in other segments which is making ITC a candidate for Re-rating.