Key Events This Week
13 Apr: Heavy call option activity amid bearish momentum
16 Apr: MarketsMOJO upgrades ITC Ltd. to Hold on valuation improvement
17 Apr: High-value trading with mixed market signals and surge in call and put options
17 Apr: Week closes at Rs.306.80 (+0.85%) vs Sensex +2.33%
13 April: Bearish Momentum Accompanied by Heavy Call Option Activity
ITC Ltd began the week under pressure, closing at Rs.298.65, down 1.82% on 13 April 2026, underperforming the Sensex which fell 0.76%. Despite this bearish price action, the stock saw significant call option activity, particularly at the ₹330 strike price, well above the prevailing market price. This surge in call options, with 3,008 contracts traded and an open interest of 2,711, indicated speculative positioning for a potential rebound or volatility ahead of the April expiry.
Technically, the stock was trading below its 20-day and longer moving averages, signalling a cautious trend. The heavy call option volume amid price weakness suggested a complex investor sentiment, balancing bearish fundamentals with speculative bullish bets.
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15-16 April: Valuation Improvement Spurs Upgrade to Hold
On 15 April, ITC Ltd rebounded to close at Rs.302.10, gaining 1.16%, supported by a strong Sensex rally of 1.89%. The stock’s volume surged to over 1 million shares, reflecting renewed investor interest. The following day, MarketsMOJO upgraded ITC’s mojo rating from 'Sell' to 'Hold', citing improved valuation metrics including a price-to-earnings ratio of 15.66 and an enterprise value to EBITDA of 13.39. The upgrade was underpinned by strong profitability ratios such as a 33.44% return on equity and a 46.73% return on capital employed.
Despite the upgrade, ITC’s stock price remained near its 52-week low, reflecting lingering market scepticism. The company’s flat quarterly results and subdued short-term returns tempered enthusiasm, resulting in a cautious but more balanced outlook.
17 April: High-Value Trading Amid Mixed Signals and Option Market Activity
ITC Ltd closed the week on a positive note at Rs.306.80, up 1.10% on 17 April, though it underperformed the FMCG sector’s 1.47% gain. The stock saw robust trading volumes exceeding 77.8 lakh shares, with a traded value of nearly ₹24,000 lakhs, highlighting strong liquidity and institutional interest. Intraday, the stock touched a high of Rs.309.95, reflecting short-term bullish momentum.
However, technical indicators remained mixed. The stock traded above its 5-day and 20-day moving averages but stayed below longer-term averages, indicating resistance to sustained upward movement. Delivery volumes declined by nearly 29% compared to the five-day average, suggesting some hesitation among long-term holders.
In the derivatives market, ITC witnessed a surge in both call and put option activity ahead of the 28 April expiry. Call options clustered around the ₹305 to ₹320 strikes, with the ₹310 strike seeing the highest volume of 16,386 contracts and open interest of 9,938. Simultaneously, put options were heavily traded at strikes near ₹300 and ₹305, signalling hedging and cautious bearish positioning despite recent gains.
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Daily Price Comparison: ITC Ltd vs Sensex (13-17 April 2026)
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-04-13 | Rs.298.65 | -1.82% | 34,738.75 | -0.76% |
| 2026-04-15 | Rs.302.10 | +1.16% | 35,394.87 | +1.89% |
| 2026-04-16 | Rs.303.45 | +0.45% | 35,485.91 | +0.26% |
| 2026-04-17 | Rs.306.80 | +1.10% | 35,820.15 | +0.94% |
Key Takeaways
Positive Signals: ITC’s upgrade to a 'Hold' rating by MarketsMOJO on 15 April reflects improved valuation metrics and a more balanced risk-reward profile. The stock’s strong profitability ratios, including a 33.44% ROE and 46.73% ROCE, underpin its fundamental strength. Robust liquidity and high institutional ownership provide stability, while recent gains and call option activity suggest cautious optimism among traders.
Cautionary Notes: Despite the upgrade, ITC’s stock price remains near 52-week lows and has underperformed the Sensex’s 2.33% weekly gain, rising only 0.85%. Heavy put option volumes near current price levels indicate hedging and bearish sentiment, reflecting uncertainty about sustained upward momentum. Declining delivery volumes point to reduced long-term investor conviction, and technical resistance at longer-term moving averages may limit near-term upside.
Conclusion
ITC Ltd’s week was characterised by a delicate balance between improving fundamentals and cautious market sentiment. The upgrade to a 'Hold' rating and heightened call option activity signal a stabilising outlook, yet the simultaneous surge in put options and subdued price performance relative to the Sensex highlight ongoing investor prudence. The stock’s strong capital efficiency and dividend yield remain attractive, but technical resistance and sector dynamics suggest that momentum may be limited in the near term.
Investors should monitor price action around key technical levels and expiry-related option dynamics closely. The interplay between fundamental valuation improvements and mixed market signals will be critical in shaping ITC’s trajectory as it approaches the April expiry and navigates broader FMCG sector challenges.
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