ITC Limited: the share of the announcement of the increase in the price of cigarettes! How much profit? –

ITC Limited: Cigarette maker ITC witnessed huge trading activity in the early hours of Thursday’s trading session as it rose over 5% to become the top gainer among the Nifty 50 stocks. The stock has seen strong buying interest despite a 16% hike in duty on cigarettes in Budget 2023.

Technically, the stock has registered a breakout from its 12-week cup pattern with huge volume. With this, the stock marked a new 52-week high on Thursday. All its moving averages are in an uptrend and exhibit bullishness across all timeframes. The 14-day RSI (82.89) indicates extreme overbought considerations in the short term. The rising MACD histogram shows strong upside potential. OBV is at its peak and indicates strong buying activity. Overall, the stock shows a good bullish setup in the medium term.

Medium-term resistance lies at the Rs 400 level, after which the stock may see another 8-10% upside. The immediate support is the 5-DMA level of Rs 357, which will also act as a strong buy level. Keep an eye on this stock in the upcoming trading session.

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