ITC Ltd Gains 4.27%: 5 Key Factors Driving the Week’s Mixed Momentum

16 February 2026: Positive Start with 1.39% Gain

ITC Ltd began the week on a positive note, closing at Rs.317.95, up 1.39% from the previous Friday’s close of Rs.313.60. The stock outperformed the Sensex, which gained 0.70% to close at 36,787.89. Trading volume was healthy at over 20 lakh shares, signalling renewed investor interest. This initial momentum set the tone for the week’s active trading sessions.

17 February 2026: Exceptional Volume Surge Amid Mixed Technical Signals

On 17 February, ITC witnessed one of its highest trading volumes in recent times, with nearly 2 crore shares exchanging hands and a traded value exceeding ₹1,370 crores. The stock closed at Rs.325.30, marking a strong 2.31% gain and outperforming the Sensex’s modest 0.32% rise. Despite this robust activity, MarketsMOJO downgraded ITC’s Mojo Grade from Hold to Sell on 9 February, reflecting caution amid valuation concerns and mixed technical indicators.

Delivery volumes declined by 25.27% compared to the five-day average on 16 February, suggesting a divergence between speculative trading and long-term holding. The stock traded above its 5-day and 20-day moving averages but remained below longer-term averages, indicating short-term strength tempered by medium-term resistance.

18 February 2026: High-Value Trading and Institutional Accumulation

ITC continued its upward trajectory on 18 February, closing at Rs.332.50, a 2.21% gain that marked the week’s highest closing price. The stock recorded a traded volume of over 46 lakh shares with a value exceeding ₹153 crore. Delivery volumes surged dramatically by 174.36% compared to the five-day average, reaching 2.47 crore shares, signalling strong institutional accumulation and confidence among long-term investors.

Despite this, ITC underperformed the FMCG sector’s 1.99% gain on the day, reflecting selective profit-taking or sector rotation. The stock remained above its short-term moving averages but below the 50-day and longer-term averages, maintaining a mixed technical outlook. The market capitalisation stood robust at ₹4,07,576 crore, reinforcing ITC’s large-cap stature.

19 February 2026: Mild Retracement Amid Sustained Delivery Volume Rise

On 19 February, ITC’s share price retraced slightly, closing at Rs.325.75, down 2.03% from the previous day’s close. This mild correction followed three consecutive days of gains and coincided with a broader market decline, as the Sensex fell 1.45%. The stock’s delivery volume remained elevated at 2.08 crore shares, a 63.9% increase over the five-day average, indicating continued institutional interest despite the price dip.

The stock’s price action suggested a potential short-term trend reversal, though it remained above its 5-day and 20-day moving averages. The decline below the 50-day moving average continued to act as resistance, tempering bullish sentiment. ITC’s market cap rose slightly to ₹4,16,597 crore, underscoring its sustained market prominence.

20 February 2026: Week Closes Strong with 0.38% Gain

ITC ended the week on a positive note, closing at Rs.327.00, up 0.38% on the day and 4.27% for the week. The Sensex also recovered, gaining 0.41% to close at 36,674.32. Trading volume was lighter at just over 3 lakh shares, reflecting a quieter session after a week of intense activity. The stock’s ability to hold above Rs.325 despite earlier volatility suggests underlying support, though the mixed technical signals and recent downgrade to Sell continue to temper enthusiasm.

Key Takeaways

Strong Weekly Outperformance: ITC’s 4.27% weekly gain notably outpaced the Sensex’s 0.39%, driven by robust volume and value trading, especially on 17 and 18 February.

Institutional Accumulation Signals: Delivery volumes surged by over 170% on 18 February and remained elevated, indicating growing confidence from long-term investors despite mixed price action.

Mixed Technical Indicators: The stock consistently traded above short-term moving averages but failed to break above 50-day and longer-term averages, suggesting resistance and a cautious medium-term outlook.

Rating Downgrade to Sell: MarketsMOJO’s downgrade on 9 February to a Mojo Grade of Sell with a score of 48.0 reflects valuation concerns and potential headwinds, advising prudence.

Liquidity and Market Capitalisation: ITC’s large-cap status with a market cap exceeding ₹4 lakh crore and strong liquidity supports sizeable institutional trades without major price disruption.

Conclusion

ITC Ltd’s performance during the week of 16-20 February 2026 was characterised by strong price gains and exceptional trading volumes, underscoring its continued prominence in the FMCG sector. Institutional investors showed increased conviction through rising delivery volumes, signalling potential accumulation. However, the stock’s inability to decisively breach longer-term moving averages and the recent downgrade to a Sell rating by MarketsMOJO highlight ongoing caution among market participants. The mixed technical and fundamental signals suggest that while short-term momentum remains positive, investors should monitor price action and volume trends closely for confirmation of a sustained uptrend. ITC’s large-cap stature and liquidity profile ensure it remains a key stock to watch within the sector, balancing defensive qualities with valuation and momentum challenges.

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