ITC Ltd., one of India’s leading conglomerates, is currently facing bearish pressure in the stock market. The stock has been in a downtrend, raising concerns among investors. With technical indicators signaling an oversold condition, investors are wondering whether this is the right time to buy or wait for further correction.
Recent Performance
ITC shares have seen a consistent decline over the past few sessions, reflecting weak sentiment in the broader market. As of March 6, 2025, the stock is trading at ₹418, down nearly 3% in the last week. The bearish momentum is largely attributed to profit booking and overall market weakness.
Technical Indicators
Relative Strength Index (RSI): The RSI is currently hovering around 28, which indicates an oversold condition. Typically, an RSI below 30 signals that the stock may be undervalued and could witness a potential rebound.
Moving Averages: ITC’s stock is trading below its 50-day and 200-day moving averages, confirming a bearish trend.
MACD (Moving Average Convergence Divergence): The MACD line has crossed below the signal line, further validating the ongoing negative sentiment.
What Should Investors Do?
For Short-Term Traders: The oversold RSI suggests that a technical bounce could be on the horizon. However, the absence of any strong reversal signals means traders should wait for confirmation before entering fresh positions.
For Long-Term Investors: The current dip could present a good buying opportunity, considering ITC’s strong fundamentals and diversified business model. Analysts remain optimistic about ITC’s long-term growth, with price targets suggesting a potential upside of 10-15% in the coming months.
Analyst Views
Market experts recommend accumulating ITC shares on dips with a long-term horizon. The company’s steady growth in FMCG, hospitality, and paperboard segments provides a cushion against market volatility.
Conclusion
While ITC shares are under pressure in the short term, the oversold technical indicators suggest a possible rebound. Long-term investors with a higher risk appetite may consider buying at current levels. However, short-term traders should wait for a clear trend reversal before making any fresh entries.
Disclaimer: The above analysis is for informational purposes only and should not be considered investment advice. Please consult your financial advisor before making any investment decisions.
