Trading Activity and Price Movement
On the day in question, ITC opened at ₹350.20 and touched a high of ₹353.20 before dipping to a low of ₹346.05. The last traded price (LTP) stood at ₹351.90, marking a modest gain of 0.61% from the previous close of ₹350.05. This price movement, however, underperformed the FMCG sector's 1-day return of 0.67%, and contrasted with the broader Sensex, which declined by 0.15%.
The stock is currently trading close to its 52-week low, just 1.81% above the ₹345.25 mark, signalling a period of price consolidation near recent lows. Notably, ITC has gained after two consecutive days of decline, suggesting a tentative trend reversal, although it remains below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating persistent downward pressure from a technical standpoint.
Institutional Interest and Liquidity
Institutional participation appears to be on the rise, with delivery volume on 2 January reaching 5.6 crore shares, a significant 23.66% increase over the five-day average delivery volume. This heightened investor engagement underscores the stock's liquidity and attractiveness for sizeable trades, supported by a liquidity threshold that comfortably accommodates trade sizes up to ₹74.02 crore based on 2% of the five-day average traded value.
Such elevated turnover and delivery volumes often reflect a mix of institutional repositioning and retail investor interest, which can precede meaningful price movements. However, the current technical setup and sector dynamics suggest that investors remain cautious, balancing the stock’s large-cap status and market presence against near-term headwinds.
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Fundamental and Market Cap Assessment
ITC Ltd. is a large-cap company with a market capitalisation of approximately ₹4,41,145 crore, firmly entrenched in the FMCG sector. Despite its size and diversified business model, the stock’s MarketsMOJO score stands at 48.0, reflecting a 'Sell' grade as of 29 December 2025, downgraded from a previous 'Hold'. This downgrade signals a deterioration in the stock’s fundamental or technical outlook, prompting investors to reassess their positions.
The company’s market cap grade is rated at 1, indicating that while it is a large-cap stock, it may not currently meet the criteria for higher quality or growth metrics within the grading framework. This assessment aligns with the stock’s recent price behaviour and relative underperformance against the sector.
Sector Context and Comparative Performance
The FMCG sector, known for its defensive qualities and steady cash flows, has shown modest gains on the day, with a 0.67% increase. ITC’s slight underperformance by 0.37% relative to the sector suggests that while the stock remains a key player, it is facing competitive pressures or investor rotation into other FMCG names.
Moreover, the broader market environment, as reflected by the Sensex’s 0.15% decline, indicates a cautious risk appetite among investors, possibly influenced by macroeconomic factors or global cues. ITC’s trading activity, therefore, must be viewed within this broader market context, where liquidity and institutional interest are critical to sustaining momentum.
Technical Indicators and Trend Analysis
From a technical perspective, ITC’s position below all major moving averages is a cause for concern, signalling a bearish trend in the short to medium term. The recent uptick after two days of decline may represent a short-lived correction rather than a sustained recovery, especially given the proximity to the 52-week low.
Investors should monitor volume patterns closely, as the rising delivery volumes and high traded value could presage either accumulation by long-term investors or distribution by those seeking to exit. The stock’s liquidity profile supports active trading, but the directional bias remains uncertain until a clear breakout above key moving averages is observed.
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Investor Takeaways and Outlook
For investors, ITC Ltd. presents a complex picture. The stock’s high-value trading and increased delivery volumes indicate strong market interest and liquidity, essential for executing large trades without significant price impact. However, the recent downgrade to a 'Sell' rating and technical weakness caution against aggressive accumulation at current levels.
Long-term investors may view the proximity to the 52-week low as an opportunity to accumulate selectively, especially if the company’s fundamentals improve or sector tailwinds strengthen. Conversely, traders and short-term investors should remain vigilant for confirmation of trend reversal signals before committing fresh capital.
Given ITC’s large-cap stature and diversified FMCG portfolio, it remains a key stock to watch within the sector, particularly as market participants weigh institutional flows and broader economic developments in the coming weeks.
Summary
In summary, ITC Ltd.’s trading activity on 5 January 2026 highlights its status as a high-value, liquid stock attracting institutional interest despite a cautious rating outlook. The stock’s technical challenges and sector-relative underperformance suggest a need for careful analysis before investment decisions. MarketsMOJO’s comprehensive grading and SwitchER analysis provide valuable tools for investors seeking to navigate this complex landscape.
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