Technical Analysis of ITC Ltd.

MACD Indicator
When the MACD line crosses above the signal line, the indicator is considered to be Bullish, which shows
an upward trend. Whereas, when the MACD indicator line crosses below the signal line, it is considered to
be Bearish depicting a downward trend of the stock in the market.
According to the observations made, MACD line is above the zero line at 4.0384; which indicates 12-day
EMA is above the 26-day EMA.
Historical studies for the past 6 months suggest that with a few fluctuations, the stock has been going
upwards. Also, with the current analysis based on MACD indicator, I would strongly recommend to buy
the stock.

RSI Indicator
When the RSI indicator shows value 70 or above, it comes under the Overbought position. This means that
the stock is not at its intrinsic value, and with time the market will correct the stock’s value. Whereas, the
Indicator value of 30 or below depicts that the stock is oversold and is being traded at a value lower than it’s
intrinsic value.
Here, currently the RSI Indicator has a value of 67.6743 which is near the Overbought value but not yet
there.
With the Historical data, the study reveals that since April 2022-September 2022(till date), the RSI Indicator
went to the Overbought range only 5 times and that too for a shorter term.
Thus, according to my observations, ITC is worth buying.
Stochastics Indicator
The Stochastic Indicator %K line below 20 clearly give a buy signal whereas the value above 80 indicates a
clear sell of the stock.
Currently %K line value is 69.5244 and %D line depicts 75.8735.
In the past, there have been mixed signals depicting various buys and sell of the stock with largely putting a
hold, i.e., the range lied between 20-80 majorly.
Thus, my recommendation would be to keep and eye on the stock and wait for a few more days before
proceeding for any sell/buy according to Stochastic Indicator.