After a two-day selloff, ITC shares gained nearly 1%: Is there room for more benefits?

After falling for two sessions in a row, ITC Ltd.'s shares rose nearly 1% on Friday.

On Wednesday, ITC began to decline shortly after reaching its one-year high of Rs 452. This year, the company has gained over 33% on the stock market, enjoying a strong run.

However, investors rushed to book profits one day after the stock turned ex-dividend, resulting in a 0.5% drop in the stock over the course of the previous five days.

Is there scope for potential upside? 

Analysts believe that the stock still has the potential for further upside in the near future despite the profit booking.

Positive technical indicators also support ITC's rebound, it should be noted. The stock is showing signs of strength and is currently trading above its 200-day moving average.

Analysts believe that the company is well-positioned to continue growing in the future due to its strong Q4 results, and investors seeking income will find the dividend yield appealing.

According to Vaishali Parekh, Prabhudas Lilladher's Vice-President, Technical Research, who spoke with Business Today, ITC stock has recently experienced a robust bull run, and "a further rise is anticipated with next targets of Rs 480-490 levels."

She stated that the Rs 420-425 region would provide support in the near future.

It should be noted that investors in ITC shares have received returns of over 62% in just one year, compared to 12% in the Nifty 50. This has been achieved despite numerous economic difficulties that have harmed a number of industries, including FMCG.

Trendlyne data indicates that the stock has an average brokerage target price of Rs 443.58, with many anticipating a rise to Rs 480-485 per share. It has a one-year beta of 0.62 percent, which shows exceptionally low unpredictability.

In addition, in the past six months, it has received target upgrades from 18 brokerages. ITC appears to be a safe investment option for investors seeking a long-term investment option with high dividend yields in light of the data.

In addition, investors should seek advice from experts to fully comprehend the risks associated with stock market investments.