Now, as the nation is preparing itself for an unlock so as to protect its commerce and trade, it is expected that FMCG sector stocks can make a recovery to the old level (BEFORE MARCH 2020). One of the most interesting things is that I still consider that ITC is on a very rationale price to the investors. Although the investors who put their money when the stock was on its year-low range of 130-140 are enjoying their smart investments, it's not too late. During the current period of unlocking, there will be more ease to SCM for the FMCG sector which can directly result in an increase in sales of inventories.
As ITC provides a wide range of products that fall under the category of strict basic necessities, it is also having a giant market in the tobacco industry of India.
Also, from 17th July, the results of FMCG stocks are lined up and ITC will be sharing its quarterly results on 24th July. The results can have a little deficit when compared to the financial plan but still consist potential of providing positive momentum to the price of the stock.
The only thing stopping ITC from having significant growth in the market is the strong of Rs200 and Rs210. These are key levels to watch. The stoch-RSI is finally reaching to the normal territory indicating a certain potential to break respective resistance levels.
Strong profit-booking momentum can be there for the stock when around the price range of Rs230.
Target- Rs250 (Long-term)
Stop loos- Rs180