ITC up 30% in 2022: Will Godfrey Phillips, NTC, Golden Tobacco follow suit?

Charts reveal that ITC seems poised for another 15 per cent rally; Similarly, Godfrey Phillips has seen a "Golden Cross" and looks promising while others are seen testing historic support levels.

Shares of ITC scaled a new '52-week high in May 2022 at a a time when the benchmark indices, BSE Sensex and Nifty 50 traded on a weak note and pointed at a downside towards their respective 52-week lows. The share price of the conglomerate having presence in the tobacco segment has soared 30 per cent so far in this calendar year. 

A look at the tobacco peers reveal that Godfrey Phillips has gained 4 per cent so far this year, while others like NTC Industries and Golden Tobacco trade with losses on YTD basis.

Given ITC's sheer outperformance, will the other tobacco players also rally? Here's what the technical charts indicate:-

ITC Ltd (ITC) 

Likely target: Rs 330

Upside potential: 15%

A broader outlook on the charts indicates that ITC is currently attempting to conquer the hurdles emerging in the range of Rs 270 to Rs 280. The monthly chart indicates the stock had faced resistance in the similar range in 2018 as well. As and when the stock conquers this resistance range, the ensuing breakout could see the stock soar to its historic peak of Rs 308. The buying momentum could even see higher levels of Rs 330. The closing basis support for the stock stands at Rs 260 and until this support is not violated on strong volume, the upside bias is here to stay.  CLICK HERE FOR THE CHART

Godfrey Phillips India Limited (GODFRYPHLP)

Outlook: Breakout of the Golden Cross could trigger a 14 per cent rally

Despite the recent sharp fall in the markets, shares of Godfrey Philips India managed to hold on to its 200-DMA currently placed at Rs 1,039. In addition, the Moving Average Convergence Divergence (MACD) firmly sustains above the zero line pointing at a positive momentum, shows the daily chart. There is a formation of “Golden Cross”, having a breakout at Rs 1,218, which if manages to cross with a sustainable move, the stock could rise in the direction of Rs 1,400 level.  CLICK HERE FOR THE CHART

NTC Industries LTD

Outlook: Needs to hold Rs 85

Shares of NTC Industries are testing the support of Rs 85, the resistance that was conquered in August last year. Technically, resistances become support once they are passed conclusively. So, if the stock manages to hold this support, it can bounce back towards Rs 115, which is the immediate hurdle, shows the weekly chart. CLICK HERE FOR THE CHART

Golden Tobacco Ltd (GOLDENTOBC)

Outlook: Needs to hold the previous reversal mark

Shares of Golden Tobacco failed to add follow-up buying on subsequently rising over the 200-DMA lately. The failed move led the stock to drop back to the reversal range of Rs 100 to Rs 95 levels. If the stock holds this support range, one cannot rule out a a short-term bounce to Rs 115, its 200-DMA. CLICK HERE FOR THE CHART