ITI - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 2.9

📊 Chart Patterns: ITI is trading slightly above its 50 DMA (311 ₹) and 200 DMA (307 ₹), but the overall trend remains weak given negative earnings and poor fundamentals. Price action shows a broad range between 233 ₹ and 593 ₹, indicating volatility.

📈 Moving Averages: Current price (313 ₹) is marginally above both 50 DMA and 200 DMA, suggesting short-term support but no strong bullish momentum.

📉 RSI: At 36.2, RSI is close to oversold territory, indicating weak momentum but potential for a technical rebound.

📉 MACD: Negative (-4.63) confirms bearish crossover, supporting downside bias.

📊 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible short-term bounce.

📊 Volume Trends: Current volume (2.59 lakh) is slightly above 1-week average (2.56 lakh), showing mild participation but no strong accumulation.

📌 Momentum Signals: Weak short-term momentum; rebound possible if support at 305–310 ₹ holds.

🎯 Entry Zone: 305–310 ₹ (near support).

🎯 Exit Zone: 340–350 ₹ (near resistance trendline).

🔎 Trend Status: Consolidating with bearish bias.

Positive

• Quarterly loss narrowed (₹-52.5 Cr vs ₹-59.7 Cr), showing slight improvement.
• Stock trading near support levels, offering potential rebound opportunities.
• Volume stability indicates investor interest despite weak fundamentals.

Limitation

• Negative ROCE (-1.33%) and ROE (-16.2%) highlight poor efficiency.
• No dividend yield, reducing investor attractiveness.
• High debt-to-equity ratio (0.90) adds financial risk.
• EPS is negative (-1.97 ₹), showing lack of profitability.

Company Negative News

• Consistent quarterly losses, though slightly reduced.
• Decline in FII holding (-0.01%) shows weak foreign investor confidence.

Company Positive News

• Improvement in quarterly performance (loss reduction of 24.1%).
• DII holdings increased (+0.01%), showing minor domestic support.

Industry

• Industry PE at 48.7 is high, indicating sector optimism, but ITI remains unprofitable.
• Telecom and technology sector has long-term growth potential, though ITI struggles to capitalize.

Conclusion

⚖️ ITI is consolidating near support with weak fundamentals and bearish technical signals. Short-term traders may consider entry near 305–310 ₹ with exit around 340–350 ₹ for rebound trades. Long-term investors should be cautious due to persistent losses, high debt, and negative returns.