ITI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.7
| Stock Code | ITI | Market Cap | 27,233 Cr. | Current Price | 283 ₹ | High / Low | 373 ₹ |
| Book Value | 15.1 ₹ | Dividend Yield | 0.00 % | ROCE | -1.33 % | ROE | -16.2 % |
| Face Value | 10.0 ₹ | DMA 50 | 302 ₹ | DMA 200 | 305 ₹ | Chg in FII Hold | 0.00 % |
| Chg in DII Hold | 0.00 % | PAT Qtr | -52.5 Cr. | PAT Prev Qtr | -59.7 Cr. | RSI | 38.0 |
| MACD | -5.91 | Volume | 7,52,418 | Avg Vol 1Wk | 9,88,622 | Low price | 233 ₹ |
| High price | 373 ₹ | Debt to equity | 0.90 | 52w Index | 35.5 % | Qtr Profit Var | 24.1 % |
| EPS | -1.97 ₹ | Industry PE | 42.4 |
📊 Chart Patterns & Trend: ITI is in a bearish reversal phase after a steep correction from its highs. Price is trading below both the 50 DMA (302 ₹) and 200 DMA (305 ₹), indicating strong downward pressure. Support is visible near 270–275 ₹, with deeper support at 233 ₹.
📉 Moving Averages: Both 50 DMA and 200 DMA are acting as resistance. Sustained move above 305 ₹ would be required to confirm a reversal.
📉 RSI: At 38.0, RSI is weak, suggesting bearish momentum and limited buying strength.
📉 MACD: Negative (-5.91), showing bearish crossover and continued downside momentum.
📊 Bollinger Bands: Price is near the lower band, reflecting oversold conditions. A rebound toward 290–300 ₹ is possible if support holds.
📊 Volume Trends: Current volume (7.5 lakh) is lower than average weekly volume (9.8 lakh), showing reduced participation and lack of strong buying support.
🎯 Entry Zone: 270–280 ₹ (support zone).
🎯 Exit Zone: 300–310 ₹ (resistance zone).
🔑 Stop Loss: 265 ₹ (below recent support).
Positive
- Quarterly losses narrowed from -59.7 Cr. to -52.5 Cr., showing slight improvement.
- Debt-to-equity ratio at 0.90 indicates manageable leverage compared to peers.
- 52-week index gain of 35.5% shows relative resilience despite weak fundamentals.
Limitation
- Price trading below both 50 DMA and 200 DMA confirms bearish trend.
- Negative ROCE (-1.33%) and ROE (-16.2%) highlight poor efficiency.
- EPS at -1.97 ₹ indicates continued losses.
- No dividend yield reduces income attractiveness.
Company Negative News
- Consistent quarterly losses reflect ongoing financial stress.
- No improvement in institutional holdings (FII/DII unchanged).
Company Positive News
- Quarterly losses narrowed, showing minor operational improvement.
- Stock has shown resilience with 35.5% 52-week gain despite weak fundamentals.
Industry
- Industry PE at 42.4 vs. ITI’s negative EPS highlights valuation challenges.
- Telecom and technology sector supported by government initiatives and digital infrastructure growth.
Conclusion
⚖️ ITI is in a bearish reversal phase with weak signals (RSI low, MACD negative). Short-term bounce is possible from 270–280 ₹, but resistance near 300–310 ₹ limits upside. Medium-term outlook remains cautious due to negative return ratios and continued losses, though manageable debt and sector support provide some stability. Risk management is crucial for traders considering entry.
Would you like me to extend this into a peer benchmarking overlay with other telecom/PSU tech firms (like MTNL, BSNL, and Tejas Networks) to highlight relative strength and sector rotation opportunities?