ITC Stock Analysis
ITC Stock Analysis by a Market Expert. The expert said “By and large, some stocks like infra stocks and various sector-related stocks are likely to see rally before the budget. Recently, we have seen that paper stocks witnessed a rally in a similar manner. Due to the belief that some positive announcements probably declared in the coming budget. The central Govt likely to announce budget 2020 in February.”
“On the contrary, there will be a negative effect on some stocks which may fall prior to the budget. For instance, tobacco stocks. There is a fear that Govt may raise taxes on tobacco-related companies resulting in the margin compression,” he added and continued his discussion about ITC Stock Analysis.
The expert also stated “we could witness somewhat pressure on ITC and Tobacco-related stocks, in January prior to the budget. While some stocks may witness gains. The consolidation range of ITC is between 204 and 234, since the year 2012. The range has been continued for several years. Finally, the stock witnessed a clear breakout during the year 2016, the price reached almost 370.”
Is It Right Time To Invest? – ITC Stock Analysis
He further added that right now, again the stock has taken the support in the consolidation level around 234. As far as price is concerned 234 level is an important level. If the stock breaks the important level 234 then there is a chance that the stock may fall to around 200. Earlier, when the stock reached the 234 level, it bounced back to around 265 levels. However, the expert is buoyant on ITC at the current level. Tobacco is driving the major revenue for FMCG Sector.
The Central Government disclosed the National Infrastructure Pipeline (NIP) projects worth of Rs 102 Lakh Cr on December 31, 2019. It extends its top priority to energy, roads, urban development and railways over the next five years. With this latest move, not only infra companies but also several other companies under different segments like cement production companies, power transmission companies may get benefit from this, he mentioned.