ITC shares: Selling pressure recedes but investors need to be cautious, says analyst 

ITC share price: Shares of ITC are in a sell-off mode but the weak sentiment seems to have eased, says an analyst. However, Hitesh Rathi, Technical Analyst (Equity & Derivatives) at Angel One warns investors to be cautious as trends in the FMCG stock signal downside.  However, the beaten down FMCG stock this year shows up to 32.47% downside in three years. The stock has fallen 23% in 2026 after government effected a cigarette tax hike from  February 1, 2026. The government replaced the old compensation cess structure, raising the core GST on cigarettes from 28% to 40% of the retail price.

In the previous session, the stock fell to a low of Rs 280. The FMCG stock is trading below all its key moving averages (20, 50, 100 and 200 DMA), reflecting sustained weakness in the broader trend. 

Market cap of the firm stood at Rs 3.5 lakh crore. ITC shares are trading near the oversold zone, with their RSI standing at 32.6. A stock with RSI below 30 is considered trading in the oversold territory and has more sellers than buyers in a session

Amid the current losing streak, the FMCG stock took hit a 52 week low of Rs 275 on June 4. 

ITC investors have taken a hit of 31% in six months and 33% in a year.

Hitesh Rathi, Technical Analyst (Equity & Derivatives) at Angel One said, “After breaking below the crucial Rs 375–380 support zone and confirming a breakdown from a bearish Head and Shoulders pattern, ITC has remained under sustained selling pressure. The stock is now approaching an important support zone, and a closer examination of the daily chart suggests that selling pressure may be showing signs of exhaustion following the prolonged decline. While the broader trend remains weak, the probability of a near-term relief rally or a period of sideways consolidation has increased. However, investors should remain cautious, as trends across all time frames continue to remain aligned to the downside. A decisive close below the 270 mark could trigger a fresh bout of selling pressure and accelerate the prevailing downtrend.”

Virat Jagad Sr. Technical Research Analyst at Bonanza said, “ITC remains under pressure on the daily chart after a sharp breakdown below the long-term support zone near Rs 300. Price action is forming lower highs and lower lows, while RSI is hovering near 33, indicating weak momentum despite being close to the oversold region. The recent breakdown from the consolidation pattern suggests sellers remain in control. As long as ITC trades below Rs 300–305, the downside risk towards Rs 275 and Rs 265 remains high. On the upside, Rs 300 and Rs 320 are immediate resistance levels, and only a sustained move above these zones can signal a meaningful trend reversal.”