ITC is a very good long term Investment. Highly diversified growth oriented company. The Q2 result was very good. The PAT was 572 Cr compared to 488 Cr of 2004 Q2. The total income also increased form 1882 Cr to 2261Cr. If you are looking at long term investments time to accumulate.
In the short term a clear trend is not seen. The directional movement indicators in the weekly and daily are moving sideways showing lack of direction... the Weekly charts still show bearishness. There will good resistance around the 130 regions. If unable to takeout 130 this one may move sideways in the short term. The increased volume on the last session is encouraging.
I would wait for this to take out 130 convincingly.
In Reliance also no clear direction is seem in the short term. This one has been moving sideways for last five weeks. This is a definite wait and watch.
Again Reliance may be good long term story with the planned capacity expansions etc. But unfortunately unlike ITC it is not available at a good bargain price.
Anybody having contrary opinion please do post. It will be interesting to compare notes.
i dont understand how the itc stock split? the price before was around 1900 and then after the split it became around 120. Wasnt the split ration 10:1? so shouldnt it have become around 190+? is it therefore undervalued? I have to admit my understanding of stock splits and bonuses and their differences is not clear, so if someone could please explain it to me?
I could not find out when i was searching regarding the split, anything about the bonus. now the pricing makes way more sense... i guess i need to track the big stocks a bit more dilligently... mostly a small and mid cap trader!