Weekly Picks 22nd July 2024

1. ITC LTP 474

ITC is one of India’s leading private sector companies, boasting a market capitalisation of USD 45 billion and a turnover of USD 7 billion. According to a study by Brand Finance, published in the Economic Times, ITC ranks among India’s “10 Most Valuable (Company) Brands.” Additionally, Business Week has included ITC in its list of Asia’s 50 best-performing companies. ITC has a diverse portfolio spanning FMCG, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, and Information Technology. While ITC excels in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging, and Agri-Exports, it is also rapidly gaining market share in emerging sectors such as Packaged Foods & Confectionery, Branded Apparel, Personal Care, and Stationery. The company’s business activities encompass Hotels, FMCG – Others, Agri-Business, FMCG – Cigarettes, Paperboards, Paper, and Packaging.

Technical Outlook

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• ITC has seen above-average volumes in a falling channel breakout. Stocks exhibit follow-up buying following a five-month consolidation breakthrough.
• The momentum indicator RSI (14) has shown a reversal in momentum by breaking out of its declining trendline and closing above 65 levels.
• The overall favourable setting is supported by the MACD, which has delivered a positive crossover and is rising above the polarity.
• The fact that the stock is above the main EMA confirms the general upward trend.

2. TATA CONSUMER LTP 1,188

Tata Consumer Products Ltd is a prominent manufacturer and supplier of consumer food and beverages. The company’s product range includes tea, coffee, water, salt, pulses, spices, and ready-to-eat offerings. Notable beverage brands under its umbrella are Tata Tea, Tetley, Eight O’Clock Coffee, Tata Coffee Grand, and Himalayan Natural Mineral Water. In its food portfolio, key brands include Tata Salt and Tata Sampann. The company’s operations are divided into segments such as Branded Business, Non-Branded Business, and Others. With a strong international presence, Tata Consumer Products Ltd generates more than half of its revenue from the Indian market.

Technical Outlook

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• TATA CONSUMER closed over the 1180 mark after a 16-week consolidation breakout. 
• The RSI (14) momentum indicator produced a double bottom breakout and closed above the 65-level threshold. 
• The stock’s position above the primary moving average (EMA) validates the overall rising trend. 
• The MACD is displaying a positive crossing, suggesting that bullish momentum is about to restart following a lengthy consolidation.

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