Key Events This Week
15 Sep: Stock opens at Rs.258.00, declines 0.86% amid broad market weakness
16 Sep: Surge in call and put option activity ahead of 29 Sep expiry
17 Sep: Continued mixed options activity with call volume spike at Rs.270 strike
18 Sep: Week closes at Rs.262.20, up 0.75% for the week, outperforming Sensex
15 September 2026: Weak Start Amid Broader Market Decline
ITC Ltd began the week at Rs.258.00, down 0.86% from the previous close, reflecting a cautious market mood. The Sensex fell 1.69% to 35,169.62, indicating broad market weakness. The stock’s volume was moderate at 810,672 shares, with no significant news driving the decline. This initial dip set a subdued tone for the stock, which was trading near its 52-week low of Rs.255.50.
16 September 2026: Divergent Options Activity Signals Mixed Sentiment
On 16 September, ITC’s stock rebounded sharply, gaining 2.46% to close at Rs.264.35, outperforming the Sensex’s modest 0.30% rise. This price movement coincided with a notable surge in both call and put option volumes ahead of the 29 September expiry. Call options at the Rs.265 strike saw 5,826 contracts traded, generating a turnover of approximately Rs.2.69 crores, signalling cautious bullishness among traders anticipating a potential price recovery.
Conversely, put options at the Rs.260 strike recorded even heavier activity with 10,854 contracts traded and a turnover near Rs.3.89 crores, reflecting significant bearish hedging or speculative bets on downside risk. The stock’s proximity to its 52-week low and a recent downgrade to a Sell rating by MarketsMOJO on 17 August 2026 contributed to this cautious stance. Despite the mixed options signals, ITC’s stock price showed resilience, supported by a high dividend yield of 5.62% and large-cap stability.
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17 September 2026: Call Option Surge Amid Mixed Technicals
ITC continued its cautious recovery on 17 September, closing at Rs.266.00, up 0.62%. The stock outperformed the Sensex’s 0.46% gain and the FMCG sector’s 0.90% rise, signalling renewed investor interest. Delivery volumes surged 14.1% over the five-day average, indicating stronger participation. The options market saw a significant spike in call option activity at the Rs.270 strike, with 10,213 contracts traded and open interest at 10,167 contracts, suggesting traders were positioning for a modest upside ahead of expiry.
Simultaneously, put option volumes remained elevated at the Rs.260 and Rs.265 strikes, with combined open interest exceeding 8,500 contracts. This dual activity reflects a market balancing bullish hopes against downside protection. Technically, ITC traded above its 5-day and 20-day moving averages but remained below longer-term averages, indicating short-term momentum amid longer-term resistance.
18 September 2026: Week Ends with Modest Gain and Elevated Volume
The week concluded with ITC’s stock retreating slightly to Rs.262.20, down 1.43% on the day but still up 0.75% for the week. Volume spiked dramatically to over 13 million shares, reflecting heightened trading interest. The Sensex closed higher by 0.52%, but ITC’s weekly outperformance of 1.16% relative to the benchmark underscores its relative resilience amid mixed market conditions.
The elevated volumes and mixed options activity suggest investors remain cautious, balancing the stock’s attractive dividend yield and large-cap status against technical challenges and a recent downgrade to Sell. The approaching 29 September expiry remains a key event, with the Rs.260 to Rs.270 strike range critical for near-term price direction.
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Daily Price Comparison: ITC Ltd vs Sensex (15-18 Sep 2026)
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-09-15 | Rs.258.00 | -0.86% | 35,169.62 | -1.69% |
| 2026-09-16 | Rs.264.35 | +2.46% | 35,276.25 | +0.30% |
| 2026-09-17 | Rs.266.00 | +0.62% | 35,439.31 | +0.46% |
| 2026-09-18 | Rs.262.20 | -1.43% | 35,625.23 | +0.52% |
Key Takeaways
Mixed Options Market Signals: The week’s heavy volumes in both call and put options at strikes between Rs.260 and Rs.270 reflect a market divided between cautious optimism and hedging against downside risk ahead of the September expiry.
Technical Ambiguity: ITC’s trading above short-term moving averages but below longer-term averages indicates a tentative recovery amid persistent resistance, suggesting volatility may persist in the near term.
Dividend Yield as a Support: The stock’s attractive dividend yield of approximately 5.5% continues to provide a valuation floor, appealing to income-focused investors despite recent price weakness and a Sell rating.
Volume Surge and Investor Participation: The sharp increase in delivery volumes on 17 September and the spike in traded shares on 18 September highlight renewed investor interest, which could influence price direction as expiry approaches.
Outperformance vs Sensex: ITC’s 0.75% weekly gain contrasted with the Sensex’s 0.41% decline, underscoring relative strength amid broader market volatility.
Conclusion
ITC Ltd’s performance over the week ending 18 September 2026 was characterised by a modest price gain and a complex interplay of bullish and bearish signals in the options market. The stock’s resilience amid technical headwinds and a recent downgrade to Sell suggests cautious investor sentiment, with the high dividend yield providing some support. The significant activity in both call and put options at key strike prices highlights expectations of near-term volatility and a critical test of support and resistance levels as the 29 September expiry approaches. Investors should closely monitor price action around the Rs.260 to Rs.270 range and remain attentive to sectoral and broader market developments that could influence ITC’s trajectory in the coming weeks.
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