ITC – TECHNICAL ANALYSIS

SUBMITTED BY
CHANDINI M.P
ROLL:NO 9
2ND MCM
 IMPERIAL TOBACCO COMPANY OF INDIA LTD :

ITC Limited, formerly known as the Imperial To b a c c o

C o m p a n y of India Limited, is a n Indian conglomerate
c o m p a n y headquartered in Kolkata, The C o m p a n y w a s
incorporated o n August 24, 1910 under the n a m e
Imperial To ba c c o C o m p a n y of India Limited. As the
C o m p a n y ' s ownership progressively Indianised, the
n a m e of the C o m p a n y w a s c h a n g e d to India To b a c c o
C o m p a n y Limited in 1970 a n d then to I.T.C. Limited in
1974. 'ITC' is to d a y n o longer i n a n initialized form. a n d is
currently o n e of India's largest private sector companies'
operates in various business sectors, including Fast-
Moving Consumer G o o d s (FMCG), Hotels, Paperboards
a n d Packaging, Agri-Business, a n d Information
Technology. S o m e of its well-known brands include
Aashirvaad, Sun feast, Bingo!, Classmate, a n d Yippee! in
the F M C G segment. The c o m p a n y has a strong
presence in the hospitality industry with its luxury hotel
chain called ITC Hotels.
• ITC is one of the leading companies in the FMCG
market. Its products have reached over 150
million Indian households. ITC on May 18, 2023, reported a
standalone net profit of Rs 5,090 crore . . It is the market
leader in the tobacco manufacturing industry with a
• 78% market share. Thus this makes us keen to know the
business model of ITC.
The business model is used
to determine a company’s plan for generating revenue. It
determines the products or services the business plans to
sell, its identified target market, and any anticipated
expenses.
• Now ITC is recognized as a company that has the
most valuable brands in the world. Here are some
ITC items that have the most impact on the
company –
• FMCG- Some of the food ITC brands are Aashirvaad,
Bingo! Sunfeast, Fabelle, Sunbean, Yippee!,
Farmland, B Natural, ITC Master Chef, Kitchens of
India, mint-o, GumOn, and Candyman. Some of the
personal care item brands are Essenza Di Wills,
Dermafique, Fiama, Vivel, Engage, Superia, Nimyle,
Neemwash, Savlon, Shower to Shower, and
Charmis. ITC sells education and stationery items
under the brand’s Classmate and Papercraft.
How to Insert a 3D Model from Remix3D

• Apparel- ITC sells lifestyle clothing under the brand name

of Wills lifestyle. It provides its customers with the best
quality products.
• Hotels – In 1975 the journey of their hotel industry
started. ITC has the second largest hotel chain. Such as
ITC One, Towers, Eva, and the Executive Club.
• Agribusiness- India’s 2nd largest Agri product exporter is
the ITC agribusiness.
 .
• Paperboard and packaging- It was first started
with packaging and printing in 1925. ITC has eco-
friendly and high-quality paperboards and special
3D Control
papers.
. ITC provides services regarding printing
and packaging.

• ITC infotech– ITC has a global technology

service and solutions provider brand as ITC
infotech.
 OBJECTIVE OF THE STUDY

 To determine the prevailing trends in ITC's stock price.

 Identifying specific chart patterns that might signal potential price reversals or continuations
 Understanding and managing the risk associated with trading or investing.
 Indicator Analysis: Using technical indicators

RESEARCH METHODOLOGY
The study gathers historical data related to ITC Limited, including daily or intraday price information,
trading volumes, and relevant stock exchange data. This data is often obtained from secondary data
sources such as financial data providers, stock exchanges, or online sources.
 TECHNICAL ANALISIS

Technical analysis is a means of examining and

predicting price movements in the financial markets,
by using :historical price charts and market statistics.
Traders use charts to spot trends
and patterns in prices. There are three types of trends:
uptrend (prices go up), downtrend (prices go down),
and sideways (prices move within a range)
Technical analysis mostly
uses bar charts, candlestick charts, line charts, and
point and figure charts. Technical analysts utilize these
chart patterns to identify trade signals.
 CHARTING TECHNIQUES
It is the heart of technical analysis and it is the basic working tool of technical analyst.chart
is simply a graphical reprasantation of series of data over a period of time.

A line chart is used to show information
that changes over time. Line charts are
created by plotting a series of several
points and connecting with a straight
line.
A diagram in which the numerical
values of variables are represented
by the height or length of lines or
rectangles of equal width
Candlesticks are graphical representations of
price movements for a given period of time.
They are commonly formed by the opening,
high, low, and closing prices of a financial
instrument
 NSE - NSE Real Time Price. Currency in INR
Follow

TECHNICAL ANALYSIS OF ITC LTD USING CHART PATTERNS

Following a the various prices of ITC LTD in the past months : That is from
march 31st to October 27th,

Date Open High Low Close

01-04-2023 384 428.25 378.5 425.55

01-05-2023 425.55 452 411.35 445.5

!
01-06-2023 447 455.9 433.85 451.6

01-07-2023 451.6 499.7 450.05 465.7

01-08-2023 466 468.85 436.1 439.7

01-09-2023 440 457 436.65 444.4

01-10-2023 444.4 458.2 427.05 434.35

 TECHNICAL INDICATOR

A technical indicator is a mathematical pattern derived from historical data used by technical traders or
investors to predict future price trends and make trading decisions. It uses a mathematical formula to
derive a series of data points from past price, volume, and open interest data.

The data’s mentioned above can be analysed by using technical indicators:

Some of the commonly used mathematical technical indicators are;

1. Simple moving average

2. Exponential moving average

Both simple moving average and exponential moving average are two sides of one coin ,that is division of moving
average.
 MOVING AVERAGE
A moving average (MA) is a widely used technical indicator that smooths out price trends by filtering out the noise
from random short-term price fluctuations.
 These indicators can me reprasanted in graphical form such as line chart,
barchart, candle stick chart etc

Line chart showing different market trends of ITC ltd during current year seven
Line chart months
A line chart is a
type of chart used
to show
information that
changes over time.
Line charts are
created by plotting
a series of several
points and
connecting them
with a straight line.
Line charts are
used to track
changes over short
and long periods.
 CANDLE STICK CHART

Candlesticks are created by up and down movements in the price. While these price movements sometimes appear
random, they often form patterns traders use for analysis or trading purposes.
Patterns are separated into two categories, BULLISH and BEARISH. Bullish patterns indicate that the price is likely to
rise, while bearish patterns indicate that the price is likely to fall. No pattern works all the time, as candlestick patterns
represent tendencies in price movement, not guarantees.
 BAR CHART

A bar chart or bar graph is a chart or graph that presents categorical data with rectangular bars with heights or lengths
proportional to the values that they represent. The bars can be plotted vertically or horizontally. A vertical bar chart is
sometimes called a column chart.
 Simple moving average

Simple moving
averages calculat
e the average of
a range of prices
by the number of
periods within
that
range.following
figures shows
the simple
moving average
of the data
relating to shares
given by ITC LTD
in the various
months of
current financial
From the above showed figure it is clear about simple moving average rates of various data given by itc ltd.
To calculate a simple moving average (SMA) as a technical indicator for shares, follow these steps:

 Select a time period: Determine the number of periods you want to use for your SMA. Common choices
are 50, 100, and 200 days, but you can adjust this based on your analysis goals.

 Gather the historical data: Collect the closing prices of the shares for the chosen time period. You need a
set of consecutive closing prices to calculate the moving average.
 Calculate the SMA:
 Add up the closing prices for the selected time period.Divide the sum by the number of periods in your
time frame.Formula:
SMA = (Sum of Closing Prices for 'n' Periods) / 'n’
• For example, if you want to calculate a 50-day SMA, you would sum the closing prices of the last 50 days
and then divide the total by 50.Plot the SMA: Plot the calculated SMA on a chart with the corresponding
time periods. This will show you the average price over time, which can help identify trends and potential
support or resistance levels.
Here the sum total of values of shares are 3095.12. so it is provided 7 month data.
So, Basically, a simple moving average is calculated by adding up the last “X” period's closing prices and
then dividing that number by X.
simple moving average = X / n
= 3095.12 = 442.16
7

• Conclusion

The 7-month moving average of 442.16 is a better representation of the underlying trend in the
data. It indicates that, on average, over the past seven months, the values have been around
442.16. This can help in identifying a more stable trend by smoothing out short-term
fluctuations, making it easier to assess the overall direction of the data. It suggests that the data
has been relatively stable with a slight upward trend over this period.
Weighted moving average

A Weighted Moving Average puts more weight on recent data and less
on past data. This is done by multiplying each bar's price by a
weighting factor. Because of its unique calculation, WMA will follow
prices more closely than a corresponding Simple Moving Average.
The weighted moving average of 438.37 takes into account the equal importance of each month's data.
This means that the average reflects a balanced view of the data over the seven-month period. It
suggests that, on average, the values have been around 438.37, and this method provides a reliable
representation of the trend in the data, considering each month's contribution equally.
 Exponential moving average

Exponential Moving Average (EMA) is similar to Simple Moving Average (SMA), measuring trend direction
over a period of time.
oscillators

An oscillator is a technical analysis tool that constructs high and low bands between two extreme values and
then builds a trend indicator that fluctuates within these bounds. Traders use the trend indicator to discover
short-term overbought or oversold conditions.
Commonly used oscillators are
• Relative strength index (RSI)
• Rate of change indicator (ROC)

1. Relative Strength Index (RSI)

is a popular momentum oscillator used in technical analysis to assess the
speed and change of price movements. It's typically used to identify overbought or oversold conditions in a
financial asset. The RSI is calculated using the following formula:

RSI = 100 - [100 / (1 + RS)]

Where:
RSI: Relative Strength Index.
RS: Relative Strength,
RS (Relative Strength) = Average of 'X' days' up closes / Average of 'X' days' down closes.
which is the average of x days' up closes divided by the average of x days' down closes.
 RSI OF ITC ltd

The RSI value of 38.76 for

ITC Limited suggests that
it is not in an extremely
overbought or oversold
condition, as it falls within
the range of 30 to 70. This
indicates a relatively
neutral momentum. The
volume of simple moving
average at 13.132 million
shows the average trading
volume, which is a
measure of
market interest
In conclusion, based on these parameters, ITC Limited's stock appears to be in a neutral position from an RSI
perspective, and the trading volume is moderate. The stock's future price movement will depend on various other
factors, such as market sentiment, news, and company-specific developments. Investors and traders should consider
a more comprehensive analysis before making investment decisions.
 ROC OF ITC ltd

The Rate of Change (ROC),

also known as the Price Rate
of Change, is a technical
indicator used in finance and
investment. It measures the
percentage change in the
price of a financial asset, such
as a stock, bond, or
commodity, over a specified
period of time. The ROC is
calculated by comparing the Rate of Change (ROC) of -3.26 for ITC Limited means that the stock's price has
current price to the price from decreased by approximately 3.26% over the specific time period for which the
a set number of periods ago . ROC is calculated . However, it's important to note that ROC alone doesn't provide the
The formula for ROC is : full picture, and its interpretation should consider the specific time frame over which it
ROC = [(Current Price - Price is calculated. Additionally, other factors, such as market conditions and company-
X periods ago) / Price X specific news, should be considered when making investment decisions.
periods ago] * 100
conclusion
In conclusion, based on this technical analysis, the stock's SMAs, WMAs, and EMAs are currently above the
stock's price, which may indicate a bearish trend. The ASI is neutral, and the negative ROC suggests a recent
price decrease. However, a comprehensive analysis should consider other factors such as market conditions,
company performance, and news events before making investment decisions. t's important to note that making
a "buy" or "sell" recommendation solely based on technical indicators can be risky, as it doesn't take into
account all relevant factors. However, given the provided technical data, it suggests a relatively bearish
sentiment with a negative ROC and the current NSE price trading below the moving averages.

Current NSE price: 434.35

Simple Moving Average: 442.16
Weighted Moving Average: 438.37
Exponential Moving Average: 439.23
RSI Value: 38.76
ROC: -3.6 So, based solely on this technical analysis, it might lean
toward a "sell" recommendation. However, it's strongly
advised to conduct a more comprehensive analysis,
including fundamental factors and market conditions, and
consider your own investment goals and risk tolerance
before making any decision.
BIBLIOGRAPHY

• WEBSITES
• https://www.itcportal.com/
• https://finance.yahoo.com/
• https://www.moneycontrol.com/

THANKYOU