ITC Shares Face Sustained Selling Pressure
Shares of ITC, a prominent FMCG major, continue to trade under considerable pressure, recently hitting an intraday low of Rs 283 on Friday. This downward movement places the stock near its 52-week low of Rs 275, recorded on June 4 this year. The company has emerged as one of the worst-performing large-cap stocks in 2026, experiencing a 22% decline year-to-date and posting negative returns for up to three years, including losses of 31.18%.
Impact of Cigarette Tax Hike on Sentiment
Sentiment surrounding ITC stock significantly deteriorated following a major increase in cigarette taxation, effective February 1, 2026. This revised tax framework replaced the previous compensation cess mechanism, elevating the Goods and Services Tax (GST) burden on cigarettes from 28% to 40% of the retail selling price. This regulatory change has been a primary driver behind the sustained selling pressure on the stock.
Technical Indicators Point to Bearish Trend, Nearing Oversold
Currently, ITC's stock is trading below all its major moving averages, including the 20-day, 50-day, 100-day, and 200-day averages, signaling a firmly bearish broader trend. The company's market capitalization stands at approximately Rs 3.56 lakh crore. Momentum indicators suggest the stock is nearing oversold territory, with its Relative Strength Index (RSI) at 37. Typically, an RSI reading below 30 is considered oversold, indicating that sellers have largely outnumbered buyers. This prolonged correction has led to substantial wealth erosion for shareholders, with the stock declining around 29% over the past six months and roughly 32.43% over the last year.
Expert Analysis: Key Support and Resistance Levels
Shitij Gandhi, AVP - Equity Technical Research, SMC Global Securities
Shitij Gandhi noted that ITC remains under pressure on the daily chart, trading below a falling trendline and key Fibonacci retracement levels. He stated, “The recent decline below the Rs 300 level suggests that sellers retain the upper hand, keeping the broader structure weak.” However, Gandhi highlighted that prices are approaching a crucial support area between Rs 280 and Rs 275, which coincides with the lower end of the measured move. This zone, he believes, could attract some buying interest and trigger a short-term pullback. He cautioned that unless the stock reclaims the Rs 305– Rs 311 range, any recovery is likely to be a relief rally within an overall bearish trend. On the downside, the stock may decline towards Rs 260 levels in the near term.
Hitesh Tailor, Technical Research Analyst at Choice Broking
Hitesh Tailor observed that ITC is trading below its key 20, 50, 100, and 200-week moving averages, with the broader trend remaining weak due to a sequence of lower highs and lower lows. However, he also identified that the stock is nearing an important support zone between Rs 275 and Rs 280, where buying interest has begun to emerge. From a technical perspective, Tailor placed immediate support around Rs 275, with broader support seen near Rs 250. On the upside, Rs 310 acts as immediate resistance, coinciding with the 20-Week EMA, followed by a stronger resistance zone around Rs 345. A sustained move above these levels, according to Tailor, would be necessary to improve the medium-term technical structure.