Parag Doctor, head of trading strategies at Keynote Capitals advised holding ITC for the long-term. According to him, the stock would gradually go up to around Rs 340-350 levels in the next one year.
Doctor told CNBC-TV18, “ITC is a long-term favourite for most investors. It is one of the heavyweights in the Nifty and it has been a low beta name. It doesn’t really move up tremendously when the Nifty goes up but at the same time there is a cushion on the downside.”
He further added, “So right now the immediate support technically is around Rs 270 which is a long-term 200-day average. So the investor should hold on to the stock in the long-term and it would gradually go up to around Rs 340-350 levels in the next one year. Don’t worry too much about the short-term fluctuations because it is a low beta name, it is not really going to get affected much by the day to day movements in the market.”
“Whatever happened in the Budget was anyway anticipated by the market, increase in excise duty. So that is not really going to affect the stock too much. It is an ideal portfolio candidate for the long-term and he/she should just hold on to it for the next few years,” Doctor added.