ITC share price cracks 4% in 2 sessions, trades at 2-month low: Expert sees further breakdown

ITC Share Price NSE: ITC stocks are in the consolidation phase for the past one month. On Thursday, the stock opened at Rs 337.50 apiece on NSE and the selling pressure dragged it to the day's low of Rs 331.30.

ITC Share Price NSE: Stock has slumped 4 per cent in the previous 2 sessions amid profit booking in the domestic equity markets, Image Source- Reuters

ITC Share Price NSE: Shares of FMCG major ITC cracked more than 2 per cent during Friday's, December 16, trading session to hit a two-month low of Rs 331.30. The stock has slumped 4 per cent in the previous 2 sessions amid profit booking in the domestic equity markets.

ITC stocks are in the consolidation phase for the past one month. On Thursday, the stock opened at Rs 337.50 apiece on NSE and the selling pressure dragged it to the day's low of Rs 331.30.

According to Zee Business panellist and market expert Sacchitanand Uttekar, the share of cigarettes to hotels major has underperformed in the past few days. There has been a supply pressure around Rs 350.

Uttekar, also the Vice President - Research & Data Analysis at Tradebulls Securities (P) Ltd, there is a possibility that ITC will test Rs 330.

From a trading perspective, he recommended a Sell call and suggested viewers placing a stop loss at Rs 340.

If the scrip breaks the level of Rs 330 on weekly basis, the correction can be longer, he said, adding that Rs 350 is a strong resistance.

In the past 1 month, ITC has underperformed the Nifty50 as it fell nearly 3 per cent against 0.75 per cent decline in the benchmark index. YTD, ITC has yielded a whopping 52 per cent return, resulting in wealth gain for investors.

ITC is the largest cigarettes company in the country with nearly 76 per cent market share. In the FMGC sector, it is the second largest company after Hindustan Unilever Limited.

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