According to reports from Bajaj Broking, ITC stock has generated a 'Buy' signal from its monthly stochastic oscillator, which rebounded from oversold territory. The technical analysts believe this positive momentum indicator suggests a likely positive bias going forward. The stock has been a major laggard in calendar year 2026, declining up to 29% compared to the BSE Sensex and NSE Nifty's decline of 9% and 7.5% respectively.
As reported by Bajaj Broking, ITC stock hit an over 3-year low at ₹275 earlier this month but has since pulled back and gained nearly 6%, turning positive for the month with a 1.6% gain in June. The stock has logged net losses in 4 out of the 6 months so far this year. Technical analysts at Bajaj Broking highlight that the stock has support in the ₹270-₹290 range, which aligns with the 61.8% retracement of the previous major rally from ₹190 to ₹485. Additionally, the 200-month exponential moving average (EMA) stands at ₹260, which has historically acted as a strong demand area. The brokerage has now recommended accumulating the stock in the ₹286-292 range with a target price of ₹330, implying a potential return opportunity of 14% over a six-month investment horizon.
According to the Bajaj Broking report, the current correction aligns with a past corrective phase in terms of both price and duration. The brokerage explained that between July 2017 and March 2020, the stock fell from ₹338 to ₹124, a decline of over 63%. The ongoing correction has exhibited a comparable magnitude, with the stock declining from ₹485 to ₹275, a fall of ₹210 over approximately 21 months. From a time perspective, the current correction closely mirrors the earlier phase, having already extended for approximately 21 months. The similarity in both magnitude and time suggests the present corrective cycle could be approaching its final phase.
As reported by Bajaj Broking, based on the positive turnaround on the key momentum oscillator and confluence of support levels, the stock can potentially rally to ₹330 levels, implying a likely gain of 14%. The projected target represents a 23.6% retracement of the entire decline from ₹485 to ₹275 and also the high of February 2026. The brokerage believes ITC's technical structure has improved as the stock trades near a key support band between ₹270 and ₹290, which represents the confluence of multiple technical indicators including the 61.8% retracement of the previous rally, the 200-month EMA positioned around ₹260, and the previous breakout zone between ₹260 and ₹280. The steep hike in taxes on tobacco products has been the key negative trigger for the sell-off at the counter.
