Trading Activity and Volume Analysis
On 6 February 2026, ITC Ltd. (NSE: ITC) emerged as one of the most actively traded stocks by volume, recording a total traded volume of 1.95 crore shares and a traded value of approximately ₹618.68 crore. The stock opened at ₹310.00 and surged to an intraday high of ₹321.75, representing a 4.32% rise from the previous close of ₹310.20. By 11:34 AM, the last traded price stood at ₹321.40, marking a robust 5.37% gain for the day.
Despite this strong price movement, the weighted average price indicated that a significant portion of the volume was traded closer to the lower end of the day’s price range, suggesting cautious accumulation rather than aggressive buying at peak prices. This pattern often signals a potential base-building phase where investors accumulate shares at relatively lower prices before a sustained uptrend.
Sector and Market Context
The Cigarettes/Tobacco sector, to which ITC belongs, outperformed broader markets with a sectoral gain of 5.78% on the same day. However, ITC’s 5.21% one-day return slightly lagged behind the sector average by 1.12%. The benchmark Sensex remained virtually flat, declining marginally by 0.02%, underscoring the sector’s relative strength amid broader market stagnation.
Investor participation, as measured by delivery volumes, showed a notable decline. On 5 February, delivery volume was recorded at 1.02 crore shares but fell sharply by 39.01% against the five-day average delivery volume. This drop in delivery volume may indicate reduced conviction among long-term investors or a shift towards short-term trading strategies.
Technical and Trend Indicators
From a technical perspective, ITC’s price currently trades above its five-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This positioning suggests a short-term bullish momentum within a longer-term consolidation or corrective phase. The stock’s recent gain follows two consecutive days of decline, signalling a potential trend reversal that traders will monitor closely for confirmation.
Liquidity remains adequate, with the stock’s traded value representing about 2% of its five-day average, allowing for sizeable trade executions up to ₹17.27 crore without significant market impact. This liquidity profile supports active trading interest and facilitates smoother price discovery.
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Fundamental and Market Capitalisation Overview
ITC Ltd. is a large-cap company with a market capitalisation of ₹3,86,715 crore, firmly entrenched in the FMCG sector. The company currently holds a Mojo Score of 51.0, reflecting a moderate outlook, and carries a Mojo Grade of ‘Hold’, upgraded from ‘Sell’ as of 4 February 2026. This upgrade indicates improving fundamentals or market sentiment, though the stock is not yet considered a strong buy.
One of ITC’s attractive features is its high dividend yield of 4.19% at the current price level, which provides a steady income stream for investors amid market volatility. This yield is particularly appealing in the context of the stock’s recent price appreciation and the broader FMCG sector’s performance.
Accumulation and Distribution Signals
The trading pattern on 6 February suggests a nuanced accumulation phase. While the volume surge is significant, the concentration of trades near the day’s low price points to measured buying rather than exuberant demand. This behaviour often precedes a more decisive upward move if sustained by positive earnings or sectoral tailwinds.
However, the decline in delivery volumes signals some caution among long-term holders, possibly reflecting profit-booking or rotation into other sectors. The stock’s relative underperformance against its sector peers despite a strong absolute gain further supports this mixed sentiment.
Investors should also note the stock’s position relative to its moving averages, which suggests that while short-term momentum is positive, longer-term trends remain to be decisively broken. This technical backdrop calls for careful monitoring of volume and price action in the coming sessions.
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Investor Takeaway and Outlook
ITC Ltd.’s exceptional volume surge on 6 February 2026 highlights renewed investor interest, possibly driven by the recent upgrade in its Mojo Grade and the stock’s attractive dividend yield. The stock’s ability to rebound after two days of decline and trade above its short-term moving average suggests a tentative trend reversal, though longer-term moving averages remain resistance points.
Investors should weigh the stock’s strong liquidity and large-cap status against the mixed signals from delivery volumes and relative sector performance. The FMCG sector’s overall strength provides a supportive backdrop, but cautious accumulation near lower price levels indicates that market participants are awaiting clearer confirmation before committing heavily.
Given the current data, ITC Ltd. remains a hold for investors seeking steady income and moderate growth, with potential upside if the stock breaks above its medium- and long-term moving averages. Monitoring volume patterns and sector dynamics will be crucial in the near term to gauge the sustainability of the recent price gains.
Comparative Performance Metrics
To put ITC’s performance in perspective, the stock’s one-day return of 5.21% trails the Cigarettes/Tobacco sector’s 5.90% gain but significantly outpaces the Sensex’s marginal decline of 0.02%. This divergence underscores the sector’s resilience and ITC’s role as a key player within it, despite some short-term investor caution.
Market participants should also consider ITC’s market cap grade of 1, indicating its status as a large-cap stock with substantial market presence and liquidity. This grade supports the stock’s suitability for institutional investors and those seeking stable exposure to the FMCG space.
Conclusion
In summary, ITC Ltd.’s high-volume trading day on 6 February 2026 reflects a complex market environment where cautious accumulation meets sectoral strength. The stock’s upgraded rating and attractive dividend yield provide a foundation for potential gains, but mixed technical signals and falling delivery volumes counsel prudence. Investors are advised to monitor upcoming sessions closely for confirmation of trend direction and volume sustainability before making significant portfolio adjustments.
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