Stocks to Buy: ITC remains a key technical pick of Religare Broking: Expects more than 8% upside

Stocks to Buy: ITC Ltd remains a key technical pick of Religare Broking.

ITC share price has gained almost 23.5% over last six months. The ITC share price opened at ₹504.90 on the BSE on Friday, marginally lower than previous closing price of ₹504.95 . ITC share price while gained more than 1% to ₹519 thereafter , it slipped in to the red and touched intraday low of ₹501.

ITC key technical pick of Religare

Religare Broking recommends buying the ITC share price with target price of ₹545. This means Religare expects more than 8% upside for ITC share price, which currently is trading close to ₹502 levels

Religare Broking recommends investors to accumulate ITC stock between share price range of ₹502-508.

Religare Broking advices investors to keep a stop loss for ITC share price at ₹485.

ITC investment rationale

The technical rationale given by Religare for investment into ITC is that it is seeing noticeable traction in the FMCG (Fast moving Consumer Goods) counters and ITC is trading in sync with the move. ITC share price has formed a buying pivot, after registering a breakout from bullish continuation pattern. Considering the price structure and buoyancy in the sector, Religare Broking expect stock to perform well in near term. Religare thus recommends creating fresh longs for ITC share price in the mentioned range.

ITC also remains a key defensive pick-

ITC stock is also looked as a defensive pick by many anlysts looking at share price is the markets , that now see valuations stretched as per some. Also some analysts see global geopolitical risks as a threat to the market,. Thus many are recommending investments into defensives as ITC.

Jefferies India Pvt ltd in their August strategy note had said that they remain overweigh on staples at ITC and Hindustan Unilever Ltd, which are part of their model portfolio.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions