ITC Ltd. Sees Robust Trading Activity Amid Sector Gains and Institutional Interest

High-Value Trading and Volume Dynamics

On the trading day, ITC Ltd. saw a total traded volume of 2.01 crore shares, translating into a hefty traded value of ₹636.56 crores. This places ITC among the most actively traded stocks by value, underscoring robust investor participation despite a slight dip in delivery volumes. The stock opened at ₹310.00 and surged to an intraday high of ₹322.25, before settling near the day’s peak at ₹322.10 as of 11:35 am IST. The previous close stood at ₹310.20, marking a strong one-day return of 5.21%, although this was marginally below the Cigarettes/Tobacco sector’s 5.78% gain.

Interestingly, the weighted average price indicates that a larger volume of shares traded closer to the day’s low price of ₹308.30, suggesting some profit-booking or cautious positioning by traders at higher levels. Despite this, the stock’s liquidity remains robust, with the ability to handle trade sizes up to ₹17.27 crores comfortably, based on 2% of the five-day average traded value.

Institutional Interest and Delivery Volumes

While the total traded volume was impressive, delivery volumes tell a nuanced story. On 5 February, ITC’s delivery volume was 1.02 crore shares, but this figure has declined by 39.01% compared to the five-day average delivery volume. This drop in delivery participation could indicate a shift towards short-term trading or increased speculative activity rather than long-term accumulation. Institutional investors, however, appear to maintain interest, as reflected in the stock’s strong value turnover and price resilience.

Technical and Trend Analysis

From a technical standpoint, ITC’s price action reveals a mixed picture. The stock has reversed its downward trend after two consecutive days of decline, signalling potential short-term recovery. It 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 that while immediate momentum is positive, medium- to long-term trends remain under pressure, warranting cautious optimism among investors.

The stock’s intraday high of ₹323.60 represents a 4.32% rise from the previous close, highlighting strong buying interest during the session. However, the fact that the weighted average price skews towards the lower end of the day’s range indicates some resistance at elevated levels. Investors should monitor whether ITC can sustain gains above its key moving averages to confirm a more durable uptrend.

Sectoral Context and Comparative Performance

ITC operates within the FMCG industry, specifically the Cigarettes/Tobacco sector, which has demonstrated strong momentum with a 5.78% gain on the day. Despite ITC’s solid 5.21% rise, it slightly underperformed the sector by 1.12%. The broader Sensex index remained largely flat, registering a negligible decline of 0.02%, highlighting ITC’s relative strength amid a stable market backdrop.

With a market capitalisation of ₹3,86,715 crores, ITC is a large-cap heavyweight and a key bellwether for the FMCG space. Its high dividend yield of 4.19% at the current price adds to its appeal for income-focused investors, especially in a low-yield environment. The stock’s market cap grade is rated 1, indicating its significant size and liquidity in the market.

Mojo Score and Rating Upgrade

MarketsMOJO’s proprietary analysis assigns ITC a Mojo Score of 51.0, reflecting a moderate outlook. The stock’s Mojo Grade has recently improved from Sell to Hold as of 4 February 2026, signalling a cautious upgrade in sentiment. This change suggests that while ITC is not yet a strong buy, the risk profile has improved enough to warrant retention rather than divestment. Investors should consider this alongside technical and fundamental factors when making portfolio decisions.

Outlook and Investor Considerations

Given the current trading dynamics, ITC appears poised for a potential recovery phase, supported by strong value turnover and sector tailwinds. However, the subdued delivery volumes and technical resistance at longer-term moving averages imply that investors should remain vigilant. The stock’s high dividend yield and large-cap status make it attractive for conservative portfolios, but momentum traders may seek confirmation of sustained price strength before committing.

Conclusion

ITC Ltd.’s trading session on 6 February 2026 highlights the stock’s continued relevance as a high-value, liquid large-cap in the FMCG sector. The combination of strong intraday gains, significant traded value, and a recent rating upgrade to Hold by MarketsMOJO provides a cautiously optimistic outlook. Investors should weigh the stock’s dividend yield and sector momentum against technical resistance and delivery volume trends to make informed decisions. As always, monitoring evolving market conditions and institutional activity will be key to capitalising on ITC’s potential in the near term.

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