ITC Shares: Is the Downturn Over? Experts Advise Caution Amid Tax Hike Impact

• ITC shares plummeted to a one-year low after a tax hike on cigarettes post-budget, though they have since recovered slightly.
• Some brokerage firms, including Nuvama and Motilal Oswal, downgraded ITC's rating and reduced target prices due to the unexpected tax increase.
• Sudeep Shah of SBI Securities states it's too early to confirm a trend reversal despite a strong bullish candle, advising caution as the stock is still below key moving averages.
• The recent rally came from a long-term support of ₹305-₹310, and this level must hold for a sustained recovery.
• Excise duty on cigarettes increased significantly from February 1, leading to a sharp rise in cigarette prices by ₹22-₹25 per pack of 10.