ITI shares soar 34% in two days; here's what technical charts indicate

Shares of ITI Ltd on Tuesday extended their sharp gains for the second consecutive session. The stock today jumped 18.41 per cent to hit a 52-week high of Rs 176.90. It eventually settled 11.41 per cent higher at Rs 166.45 on BSE. At this price, the scrip has zoomed 33.70 per cent in just two days. The counter has gained 80.94 per cent in six months and 56.59 per cent in 2023 so far.

The back-to-back spike in ITI's share price came after the state-run telecom solutions provider said it has developed its own branded laptop and micro-PC. The company said its products would match international quality and performance. The products have been branded as 'SMAASH'.

"The products have already been deployed in the market and ITI has won many tenders competing against MNC brands like Acer, HP, Dell and Lenovo. The two flagship products - Laptop and Micro PC have been designed in association with Intel Corporation with which an MOU has been signed for design and manufacturing," the company stated.

The PSU said SMAASH products save electricity, cost, and workspace and over 12,000 such PCs have been deployed and are successfully performing at various customer sites. "SMAASH PC comes in variants like i3, i5, i7 and so on. One of the solutions that ITI Ltd offers is the SMAASH PCs with solar solutions. The SMAASH PCs are highly compatible with solar solutions since they take DC input," it added.

ITI Ltd also said it has recently bagged two tenders from KITE (Kerala Infrastructure and Technology for Education) and has supplied around 9,000 laptops to Kerala government schools.

Rajesh Rai, Chairman and Managing Director of ITI Ltd, said, "SMAASH brand is being received well and is helping us win tenders in cut throat markets. It is indeed a challenging task to win tenders competing with MNCs who have global reach and deep pockets. We have to continuously innovate not only with technology but also with our business model and SMAASH delivers every time."

On technical setup, the counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 87.13. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 39.52 against a price-to-book (P/B) value of 5.84.

The scrip has a one-year beta of 0.71, indicating low volatility.

AR Ramachandran from Tips2trades said, "ITI has been very bullish but also very overbought on the daily charts with next resistance at Rs 179.85. Investors should be booking profits at current levels as a daily close below support of Rs 158.7 could lead to a sharp fall till Rs 124 in the near term."

Around 47.54 lakh shares changed hands on BSE today. This was way more than the two-week average volume of 2.64 lakh shares. Turnover on the counter stood at Rs 79.68 crore, commanding a market capitalisation (m-cap) of Rs 15,993.96 crore.

ITI is a Central PSU under Ministry of Communication.

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