ITC Stock Nears Potential Reversal After 21-Month Correction

Jyoti Rathi - Kolkata Bureau Jun 26, 2026 3,400 Views

ITC Limited is showing technical signs of emerging from a 21-month correction, with Bajaj Broking identifying the stock as a high-conviction pick. Analysts suggest an entry in the ₹286–₹292 range, targeting a 14% rally to ₹330 over the next six months, supported by key long-term support levels and improving momentum indicators.

MUMBAI — Shares of ITC Limited have captured investor attention as the stock appears to be consolidating near a critical long-term support zone, signaling a possible end to a 21-month downward trend. Following a period of significant price adjustment, the company has become the focus of renewed interest among technical analysts and brokerage firms.

As of June 25, 2026, Bajaj Broking Research Desk has identified ITC as a "High Conviction" Margin Trading Facility (MTF) pick. The brokerage firm anticipates that the stock, which has faced substantial selling pressure over the past two years, is showing signs of exhaustion in its corrective phase and could be positioned for a rebound.

Technical Setup and Market Outlook

The ongoing correction in ITC stock has seen a decline of approximately 210 points from its recent peak of ₹485, mirroring the scale and duration of the company's notable downturn between 2017 and 2020. Market analysts observe that the stock is currently finding stability within a major support band between ₹270 and ₹290.

According to the latest technical outlook from Bajaj Broking, this support zone is reinforced by several factors, including the 61.8% Fibonacci retracement of the previous major rally and the 200-month exponential moving average (EMA) positioned near ₹260. Furthermore, improving momentum indicators, such as the monthly stochastic oscillator rebounding from oversold territory, have provided technical support for a more bullish stance.

Official Projections

The brokerage has recommended an accumulation strategy for the stock within the ₹286–₹292 range. With a target price set at ₹330, the recommendation implies a potential upside of approximately 14% over a six-month investment horizon.

"According to officials at Bajaj Broking, the technical structure of ITC has significantly improved, offering a favorable risk-reward profile. The consolidation near these long-term support levels suggests that the current corrective cycle may be nearing its final phase, potentially paving the way for a pullback," the firm stated in its June 25, 2026, report.

Why It Matters

For investors, the potential reversal of a multi-year correction in a large-cap stock like ITC is significant. As a major component of the Indian FMCG sector, movements in ITC often reflect broader sentiment regarding domestic consumption and diversified conglomerate performance. The technical base formation currently underway is being closely monitored by market participants to determine if the stock can sustain upward momentum and break through resistance levels established earlier this year.

Key Facts at a Glance

Correction Duration: ITC has spent approximately 21 months in a corrective phase.
Recommended Buy Range: ₹286 to ₹292 per share.
Projected Target: ₹330, representing a potential 14% return.
Time Horizon: Six-month investment window.
Support Zone: Crucial technical support identified between ₹270 and ₹290.

Frequently Asked Questions (FAQ)

1. What is driving the optimistic outlook for ITC stock?

The optimism is primarily technical. Analysts believe the stock’s prolonged 21-month correction is showing signs of exhaustion as it consolidates near multi-year support levels, supported by improving momentum indicators like the monthly stochastic oscillator.

2. What are the key risks to this technical trade?

While technical indicators show a potential for a rebound, stock market investments carry risks. Factors such as shifts in consumer demand, government tax policies on tobacco products, and overall market volatility can influence the stock's performance regardless of technical setups.

3. What does "High Conviction MTF Pick" mean?

This terminology indicates that the brokerage firm has high confidence in the technical setup of the stock and is comfortable recommending it for margin trading, where investors can borrow funds to increase their position size.

4. Where can I track ITC's real-time performance?

Investors can track ITC stock performance through major exchange platforms like the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE).