ITI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.5
| Stock Code | ITI | Market Cap | 25,571 Cr. | Current Price | 265 ₹ | High / Low | 373 ₹ |
| Book Value | 15.1 ₹ | Dividend Yield | 0.00 % | ROCE | -1.33 % | ROE | -16.2 % |
| Face Value | 10.0 ₹ | DMA 50 | 279 ₹ | DMA 200 | 297 ₹ | Chg in FII Hold | 0.00 % |
| Chg in DII Hold | 0.00 % | PAT Qtr | -21.0 Cr. | PAT Prev Qtr | -52.5 Cr. | RSI | 46.8 |
| MACD | -6.01 | Volume | 79,32,826 | Avg Vol 1Wk | 2,91,12,862 | Low price | 233 ₹ |
| High price | 373 ₹ | Debt to equity | 0.90 | 52w Index | 23.2 % | Qtr Profit Var | 68.7 % |
| EPS | -1.54 ₹ | Industry PE | 50.0 |
📉 Chart & Trend: ITI is trading at ₹265, below both its 50 DMA (₹279) and 200 DMA (₹297), confirming a bearish bias.
📊 RSI: At 46.8, RSI is neutral, showing neither strong buying nor selling pressure.
📉 MACD: Negative at -6.01, reinforcing bearish momentum and lack of immediate recovery signals.
📈 Bollinger Bands: Price is near the mid-band, reflecting consolidation with mild downside risk.
📊 Volume Trends: Current volume (79 lakh) is significantly lower than the 1-week average (291 lakh), showing reduced participation and weak conviction.
📌 Momentum Signals: Short-term momentum is weak. Sustaining above ₹260 support is crucial; a breakout above ₹280 could trigger recovery.
🎯 Entry Zone: ₹255–₹265 (support zone, cautious entry).
🎯 Exit Zone: ₹285–₹300 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is consolidating with weak momentum and bearish undertones.
Positive
- Quarterly losses reduced from -₹52.5 Cr to -₹21 Cr, showing improvement.
- Book value of ₹15.1 provides some margin of safety.
- Debt-to-equity ratio at 0.90 is manageable compared to peers.
- 52-week index performance at 23.2% shows relative strength.
Limitation
- Negative ROCE (-1.33%) and ROE (-16.2%) highlight poor efficiency.
- No dividend yield, limiting investor income support.
- EPS at -₹1.54 reflects continued losses.
- Price trading below both DMA 50 and DMA 200.
Company Negative News
- Consistent losses with negative profitability metrics.
- No improvement in FII or DII holdings.
- Weak technical momentum with bearish MACD.
Company Positive News
- Quarterly losses narrowed significantly (-₹21 Cr vs -₹52.5 Cr).
- Stable debt levels with manageable leverage.
Industry
- Industry PE at 50.0 highlights premium valuations compared to ITI’s loss-making status.
- Telecom and defense equipment sector is cyclical, with demand tied to government contracts and infrastructure projects.
Conclusion
⚠️ ITI is in a consolidation phase with weak technical indicators. While losses have narrowed, negative ROE/ROCE and lack of dividend yield limit attractiveness. Short-term traders may consider entry near ₹255–₹265 with strict stop-loss, targeting ₹285–₹300. Long-term investors should wait for sustained profitability and trend reversal before accumulating.
Selva, since you’re benchmarking telecom and defense-linked plays, I can prepare a peer overlay with BEL, BHEL, and HFCL to compare ITI’s momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?