ITC Share at 7-Month-High in Sudden Rally

Mumbai: The dull performer amid the recent bull market rally, the ITC managed to come back on its path as its shares price jumped to 8 per cent in sudden rally and traded at Rs 239.40 apiece on Bombay Stock Exchange (BSE) on Tuesday.

The stock saw a remarkable rise in trading volumes on Thursday as it touched its 52-week high of Rs 239 per share, posting an astonishing 7 per cent rally in opening deals.

Reportedly, ITC is up 11.45 per cent so far this month. It has staged a breakout between the Rs 207-217 zone after consolidating for a very long time.

Given the sudden spurt, many financial analysts are optimistic about the recovery in the business scenario.

Several analysts whom the Financial Express Spoke to believed that the immediate resistance lies in between Rs 231 to Rs 238 while market experts believe that the rise has been on the expected line in the aftermath of a long fall.

In a conversation with Financial Express Online, Aparjita Saxena of the Technical Research Analyst believes that there is a possibility that ITC might want to restructure other units including the demerger of its hotel business and ITC Infotech.

Commenting on the sudden spurt in the ITC shares, an expert said that moving beyond Rs 238 will give the stock some more strength and upside advantage.

The experts suggested that the company is thinking of unlocking theme stocks like ITC, with good financial strength and strong prospects to make the stocks stay positively afloat.

The experts also expressed hope that the stock will remain in its position and investors can continue its journey by investing for a considerable period while highlighting that any possible restructuring in the business may lead to the biggest positive trigger for the company which could further strengthen its outlook.

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