Godfrey Phillips bounces back 8% from recent low, ITC sulks; Chart check

Analysts attribute the pullback in Godfrey Phillips to value-buying, as the stock had shed nearly 50% in the last five months. ITC, meanwhile, has witnessed a gradual 29% dip from September 2024 high.

Shares of ITC and Godfrey Phillips have displayed a divergent trend in recent trading sessions. On Tuesday, Godfrey Phillips stock surged as much as 5.5 per cent to a high of ₹2,249, while ITC slumped to a fresh 33-month low at ₹333.80 on the NSE.  In the past two trading sessions, Godfrey Phillips has rallied over 8 per cent, whereas ITC has witnessed a tepid trade.  Since the start of the calendar year, ITC stock has tumbled over 17 per cent, while Godfrey Phillips has plunged over 19 per cent after the government announced a significant tax hike on cigarettes.  The government, on December 31, 2025, notified a new tax structure for tobacco and pan masala products, set to take effect from February 1, 2026. The new tax rates would be in the range of 20 - 55  per cent (depending on various sizes); and will be over and above the GST rate of 40 per cent (increased from 28 per cent) on cigarettes.  The recent pullback in Godfrey Phillips share price could be on account of value-buying, as the stock was seen trading with a negative bias for the fifth straight month. From its high of ₹3,923 hit in September 2025, the stock has plunged nearly halved (down nearly 48 per cent) at current levels.  Whereas, in case of ITC, prior to this month's steep fall - the stock has witnessed a gradual decline from its summit of ₹469.38 (down nearly 29 per cent) registered in September 2024.  Most brokerage firms have downgraded rating on ITC stock, and lowered target prices post the tax hike amid fears ITC may lose market share to unbranded (illegal) players. Analysts at ICICI Securities predict up to 5.5 per cent sales volume drop in case of 18 - 19 per cent price hike by the company. READ MORE 

Here's how these 2 stocks are placed on the technical charts.

ITC stock chart

Current Market Price: ₹334.10 

 

  The above chart shows that the stock continues to grind lower, and the 14-day RSI remains in the oversold zone with a reading of 13.43. RSI is a key momentum oscillator, in general a RSI reading below 30 is considered as oversold. 

Godfrey Phillips stock chart

Current Market Price: ₹2,179 

 

  The daily chart shows that the stock has bounced back with 2 green candles in recent days. That apart, the 14-day RSI (now 29.49) is seen attempting to exit the oversold territory for the first time in this calendar year.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.