ITC Ltd Declines 1.23% Amid Bearish Momentum and Elevated Call Option Activity

March 2: Stock Hits 52-Week Low Amid Prolonged Downtrend

ITC Ltd’s share price touched a fresh 52-week low of Rs.300.1 on 2 March 2026, reflecting ongoing bearish momentum. Despite this, the stock managed a modest gain of 0.38% on the day, closing at Rs.314.80, marginally outperforming the broader market which declined sharply with the Sensex falling 1.41%. The stock’s decline to this level capped a six-session losing streak, accumulating a 4.39% loss over that period.

Technical indicators remain weak, with ITC trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical backdrop underscores the persistent selling pressure. The broader market environment was challenging, with the Sensex opening sharply lower and remaining below its 50-day moving average, signalling cautious investor sentiment.

Fundamentally, ITC’s recent financial results have been flat, with concerns over slower debtor turnover and subdued growth weighing on sentiment. The stock’s price-to-book ratio of 5.5 and a PEG ratio of 0.7 suggest valuation is fair but not compelling enough to offset near-term headwinds. Institutional investors continue to hold a significant 85.04% stake, indicating confidence in the company’s long-term prospects despite short-term volatility.

March 4: Heavy Call Option Activity at ₹320 Strike Despite Bearish Technicals

On 4 March, ITC Ltd saw a surge in call option trading activity, particularly at the ₹320 strike price expiring on 30 March 2026. A total of 5,436 contracts were traded, generating a turnover of approximately ₹35.83 crores, with open interest at 7,980 contracts. This activity indicates that some market participants are positioning for a moderate rebound or hedging against further downside.

Despite this options market interest, the stock closed lower at Rs.312.00, down 0.89%, underperforming the Sensex which declined 1.92%. The technical picture remained bearish, with the stock trading below all major moving averages and hovering close to its 52-week low. Delivery volumes increased by 34.53% compared to the five-day average, signalling heightened investor participation amid volatility.

MarketsMOJO’s downgrade of ITC Ltd to a Sell rating with a Mojo Score of 48.0 on 9 February 2026 continues to weigh on sentiment. The stock’s market capitalisation of ₹3,91,225.19 crores places it among large-cap FMCG stocks, but recent price action reflects caution among investors.

March 5: Call Option Surge at ₹350 Strike Amid Bearish Stock Momentum

The following day, call option activity intensified at the ₹350 strike price, with 5,945 contracts traded and a turnover of approximately ₹30.44 lakhs. Open interest remained elevated at 5,733 contracts, despite the stock price closing at Rs.311.55, significantly below this strike level. This suggests speculative positioning or hedging strategies amid ongoing market uncertainty.

ITC’s share price declined by 0.14% on the day, underperforming the FMCG sector by 0.32%, while the Sensex gained 1.29%. Delivery volumes surged by 108.68% compared to the five-day average, indicating active accumulation or repositioning despite the bearish trend. The stock remains below all key moving averages, reinforcing the prevailing downtrend.

The divergence between the stock’s underperformance and the broader market’s positive movement highlights the cautious stance investors are taking. The elevated call option interest at a strike nearly 13% above the current price points to a complex market outlook, with some traders betting on a sharp recovery while others may be hedging.

March 6: Week Closes Lower Amid Continued Bearish Pressure

ITC Ltd ended the week on 6 March 2026 at Rs.309.75, down 0.58% on the day and 1.23% for the week, underperforming the Sensex which declined 3.00%. The stock’s persistent trading below all key moving averages and proximity to its 52-week low reflect ongoing bearish momentum. Volume remained steady, with 967,350 shares traded, indicating sustained investor interest despite the downtrend.

The week’s price action was shaped by a combination of subdued financial results, cautious technical indicators, and mixed signals from the options market. While call option volumes suggest some speculative optimism, the overall technical and fundamental backdrop remains cautious, with MarketsMOJO’s Sell rating reinforcing a conservative outlook.

Key Takeaways

Positive Signals: Despite the downtrend, ITC maintains strong long-term fundamentals including a high return on equity of 33.4% and a conservative capital structure. Institutional ownership remains robust at 85.04%, signalling confidence in the company’s intrinsic value. The surge in delivery volumes on select days indicates active investor participation and potential accumulation.

Cautionary Signals: The stock’s persistent trading below all major moving averages and proximity to a 52-week low highlight ongoing bearish momentum. MarketsMOJO’s downgrade to a Sell rating with a Mojo Score of 48.0 reflects deteriorating technical and fundamental outlooks. Heavy call option activity at strike prices above current levels suggests speculative positioning rather than broad-based bullish conviction.

Conclusion

ITC Ltd’s performance in the week ending 6 March 2026 was characterised by a modest decline amid a challenging market environment. The stock’s fall to a 52-week low and sustained bearish technical signals underscore the cautious sentiment prevailing among investors. While call option activity indicates some speculative optimism for a rebound, the overall outlook remains subdued with a Sell rating from MarketsMOJO.

Investors should remain attentive to price action as the 30 March expiry approaches, particularly monitoring movements around key strike prices in the options market. The combination of strong long-term fundamentals and near-term technical weakness presents a complex investment landscape requiring careful risk management.

Get Started for only Rs. 16,999 - Get MojoOne for 2 Years + 1 Year Absolutely FREE! (72% Off) Start Today