ITC Ltd’s Mixed Week: -0.39% Price Change Amid Volatile Options Activity

Jan 27: Stock Hits 52-Week Low Amid Market Downturn

ITC Ltd’s shares declined sharply on 27 January 2026, closing at Rs.318.80, down 1.44% from the previous close. This marked a fresh 52-week low near Rs.321, reflecting sustained selling pressure. The broader Sensex, however, gained 0.50% that day, highlighting ITC’s underperformance relative to the market. The stock traded below all key moving averages, signalling a bearish technical setup.

Investor sentiment was further dampened by flat quarterly results reported recently and a downgrade by MarketsMOJO to a Sell rating with a Mojo Score of 48.0. The company’s financial metrics, including a low dividend payout ratio of 51.68% and a reduced Debtors Turnover Ratio of 12.97 times, contributed to cautious positioning.

Jan 27: Heavy Put Option Activity Reflects Bearish Sentiment

On the same day, ITC emerged as the most active stock in put options trading, with 3,340 contracts at the Rs.325 strike expiring 24 February 2026. The turnover of ₹525.3 lakhs and open interest of 3,236 contracts indicated strong hedging or bearish speculation. The stock’s proximity to its 52-week low intensified demand for downside protection, as investors anticipated further weakness.

This surge in put buying contrasted with the broader FMCG sector’s mixed performance and underscored the cautious stance of market participants amid technical and fundamental headwinds.

Jan 29: Q3 FY26 Results Show Margin Pressure and Revenue Decline

ITC’s third-quarter financial results for FY26 revealed challenges with margin compression and a decline in revenue, signalling operational pressures. These results reinforced the cautious market outlook and contributed to the stock’s subdued performance in subsequent sessions.

Jan 30: New 52-Week Low of Rs.316.4 Amid Continued Underperformance

The stock extended its downtrend on 30 January, hitting a new 52-week low of Rs.316.4 intraday before closing at Rs.322.20, up 1.11% on the day. Despite the intraday rebound, the overall weekly performance remained negative. ITC’s shares traded below all major moving averages, confirming persistent bearish momentum.

While the Sensex gained 1.62% over the week, ITC’s marginal decline of 0.39% highlighted its relative weakness. The stock’s valuation metrics, including a Price to Book Value ratio of 5.6 and a PEG ratio of 0.9, suggest that earnings growth is not fully reflected in the share price, which has declined over 26% in the past year despite an 18% rise in profits.

Jan 30: Heavy Call Option Activity Amid Mixed Market Signals

Contrasting the bearish technicals, ITC saw significant call option volumes on 30 January, particularly at the 320, 330, and 350 strike prices expiring 24 February 2026. The 320 strike call recorded 4,964 contracts with a turnover of ₹766.44 lakhs, while the 330 and 350 strikes also saw robust activity. This suggests some market participants are positioning for a potential rebound despite the prevailing downtrend.

However, delivery volumes declined by over 32%, indicating waning investor conviction. The stock marginally outperformed its FMCG peers by 0.43% on the day but lagged the Sensex, which fell 0.48%. The mixed signals from derivatives and price action highlight a complex outlook for ITC in the near term.

Jan 30: Renewed Heavy Put Option Activity Signals Caution

On the same day, ITC again led put option trading with 2,437 contracts at the Rs.320 strike expiring 24 February 2026, generating a turnover of approximately ₹30.8 crores. Open interest stood at 3,757 contracts, indicating sustained bearish positioning or hedging. The stock’s price near Rs.321.20, just above the strike, suggests the Rs.320 level is a critical support zone closely watched by investors.

This activity aligns with the technical downtrend and recent downgrade to Sell, reflecting elevated downside risks. Despite this, ITC’s strong fundamentals, including a robust Return on Equity of 33.4% and steady sales growth of 10.71% annually, provide some resilience amid the volatility.

Key Takeaways

ITC Ltd’s week was characterised by a tug of war between bearish technicals and mixed derivatives market signals. The stock’s decline to new 52-week lows and trading below all major moving averages indicate persistent downward momentum. The downgrade to a Sell rating by MarketsMOJO and flat quarterly results add to the cautious outlook.

Heavy put option activity at strikes near the current price reflects investor hedging and bearish sentiment, while simultaneous call option volumes suggest some speculative or hedging interest in a potential rebound. Institutional ownership remains high at 85.04%, signalling confidence in the company’s long-term fundamentals despite near-term challenges.

Valuation metrics show the stock trading at a discount relative to historical norms and peers, with earnings growth not fully priced in. However, declining delivery volumes and subdued investor participation highlight waning conviction among buyers.

Conclusion

ITC Ltd’s performance in the week ending 30 January 2026 reflects a complex interplay of fundamental resilience and technical weakness. While the stock marginally underperformed the Sensex, the fresh 52-week lows and bearish options activity underscore caution among market participants. The mixed signals from call and put options suggest uncertainty about near-term direction, with critical support levels near Rs.320 closely monitored.

Investors should weigh the company’s strong long-term fundamentals against the current operational pressures and technical challenges. The coming weeks, especially around the 24 February options expiry, will be crucial in determining whether ITC can stabilise or face further downside risks.

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