While the BSE Sensex and the Nifty 50 have tumbled 7 per cent in May alone, down almost 15 per cent from their respective historic peak, ITC shares have been hitting fresh 52-weeks high and have gained 5 per cent so far in May.
On Thursday, shares of ITC hit an over three-year high of Rs 279.15, surging 5 per cent on the BSE, after the company reported strong results with around 9 per cent cigarette volume growth in March quarter (Q4FY22). The stock of the cigarettes-to-hotels major hit its highest level since July 2019, when it hit a high of Rs 282.95.
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ITC reported quarterly results on Wednesday with net profit rising 11.8 per cent amid revenue growth across verticals. The non- cigarette business recorded an increase of 12.32 per cent, while cigarette business rose 9.96 per cent.
Though ITC is 40 points short from its all-time high of Rs 315.25-mark, the present scenario on the daily and weekly charts point to a strong up move. Not only has the stock of ITC broken out from a "Golden Cross" pattern on the weekly chart, the stock is upholding the support of 50-day moving average (DMA), placed at Rs 254 levels, with aggressive momentum, shows the daily trend.
As of now, as long as the stock stays above Rs 250-mark - the major breakout and reversal mark in minor corrections - it is ready to hit a new historic peak. Given this, a fresh rally towards Rs 400 levels can't be ruled out over the next 3-6 months, as per the daily and weekly setup.
The present scenario on charts indicates 14 per cent upside and a fresh breakout, thereof, could see another 26 per cent surge. Overall, a 40 per cent jump in ITC shares cannot be denied as per the technical set up.
The broader outlook displays accumulation near Rs 200 levels and a support build-up in the range of Rs 245 to Rs 230 levels. The trend is gradually rising upward and absorbing all the selling pressure emerging at respective resistances.
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 "ITC")