ITI - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.4

📉 ITI is consolidating with weak fundamentals and mixed technical signals, showing short-term recovery potential but long-term caution.

📊 Technical Analysis

• Trend Status: Consolidating — price is above both 50-DMA and 200-DMA, but momentum and volume are weak.
• Moving Averages: Price ₹327 is above 50-DMA (₹321) and 200-DMA (₹306), indicating mild bullish bias.
• RSI (48.7): Neutral zone, suggesting indecision and lack of strong momentum.
• MACD (3.28): Positive crossover, indicating early bullish momentum.
• Bollinger Bands: Price near mid-band, consistent with consolidation and low volatility.
• Volume: Current volume (4.89L) is below weekly average (6.27L), showing reduced participation.

🎯 Entry & Exit Zones

• Support Levels: ₹321 (50-DMA), ₹306 (200-DMA), ₹290
• Resistance Levels: ₹340, ₹365, ₹400
• Optimal Entry: ₹315–₹325 (on pullback)
• Exit Target: ₹365–₹400 (resistance zone)

✅ Positive

• MACD crossover suggests short-term bullish momentum.
• Price has recovered 48.6% from its 52-week low of ₹220.
• Quarterly loss narrowed from ₹67.3 Cr to ₹59.7 Cr, showing slight improvement.

⚠️ Limitation

• Negative ROCE (-1.33%) and ROE (-16.2%) reflect poor capital efficiency.
• EPS of -₹2.14 and lack of P/E ratio indicate persistent losses.
• Volume below average, suggesting weak conviction in price movement.

📉 Company Negative News

• FII holdings declined by 0.01%, showing reduced foreign investor interest.
• Stock is down 44.8% from its 52-week high of ₹593, indicating long-term underperformance.

📈 Company Positive News

• DII holdings increased slightly by 0.01%, showing cautious domestic accumulation.
• Quarterly profit variation of 7.58% reflects marginal operational improvement.

🏭 Industry

• Telecom and electronics manufacturing sector is evolving with government support and digital infrastructure push.
• Industry P/E (45.1) is significantly higher than ITI’s undefined P/E, suggesting valuation uncertainty.

🧾 Conclusion

• ITI is consolidating with weak fundamentals and mixed technical indicators.
• Entry near ₹315–₹325 could offer speculative value with targets around ₹365–₹400.
• Investors should monitor earnings trajectory and volume trends for confirmation of sustained recovery.