ITC demerger: Medium-term outlook intact; stk can hit Rs 550 to Rs 575 mark

While the medium-term outlook remains highly optimistic, the stock may remain choppy in the near-term

The board of ITC has approved the demerger of the hotel business, as mentioned in its filing on Monday. The new entity will have maximum hold of the shareholders with 60 per cent holding, while ITC will retain 40 per cent. 

The news of demerger has triggered a sharp volatility in the stock, with price action challenging the key levels. Following the development, the counter slipped over 3.5 per cent to Rs 469.6 levels on the BSE. The immediate support for the stock, as per the technical charts, is now placed at Rs 460, followed by Rs