This dividend paying FMCG major has risen despite a falling market; Know its targets here!

ITC has risen nearly 2% in a falling market and is the top gainer amongst Nifty stocks. 

The stock of ITC Limited has soared nearly 2% in early Friday trade. It is undergoing extreme bullishness, having gained over 7% from its prior swing low of Rs 258.55. Meanwhile, the price pattern looks bullish as the stock has registered higher highs and higher lows. It trades just about 2% lower than its 52-week high of Rs 282.55. Also, the stock has gained points for four consecutive months. To add further, the volumes have been above average in the past few days, indicating an active buying interest among the market participants.

Along with its bullish price structure, the technical parameters also indicate strong strength in the stock. The 14-period daily RSI (62.07) is in the bullish territory and indicates strong strength. The MACD had indicated a bullish crossover a few trading sessions back and shows good upside. The +DMI is above the -DMI and shows a positive uptrend. The OBV is peaking and demonstrates good buying interest. Meanwhile, TSI and KST indicators are also bullish. The stock is currently about 5% above its 50-DMA and 15% above its 200-DMA. In a nutshell, the stock price is expected to go higher.

On a YTD basis, the stock has already gained about 27% and has outperformed most of its peers. With such bullishness, the stock is expected to test the level of Rs 300, followed by Rs 315 in times to come. In such a weak market scenario, high dividend paying stocks are generally considered a good bet as they provide limited downside risk. Also, This Cigarette-to-paper conglomerate is expected to perform better given its strong rural demand and robust performance. Traders can expect good gains from this stock in the short to medium term. It is a fundamentally sound stock and Investors can also consider buying it on dips for the long term.

ITC Limited has a diversified business, which is the main source of revenue coming from its tobacco business. It also works in Hotels, Paper and Packaging, and Agri industries.