The stock was in a consolidation phase, trading within a broad range of Rs 225 on the lower side and Rs 390 on the higher side from October 2023, until December 2024, from where it broke above and went in the northward direction.
Since then, the ITI stock has been making higher highs and higher lows on its daily chart.
With the recent rally in the stock, the question lingers if it is time for the investors to book their profits or if the momentum is likely to continue. Here is what analysts say:
“Given the recent surge, existing position holders should set a stop-loss at Rs 470 and trail it as the stock rises,” advises Ajit Mishra, SVP of Research at Religare Broking.
Meanwhile, those considering fresh trades are advised to wait for some consolidation and base formation before entering.On the daily chart, the stock is placed well above all its significant short, medium and long-term exponential moving averages (DEMA), which is typically a bullish sign, but also near the 70 mark on the relative strength indicator (RSI), which is an overbought territory. This usually signals an expectation of some profit booking at higher levels.Therefore, Preeti K Chabra, Founder of Trade Delta cautions that any fresh position in this stock should be traded with a stop loss of Rs 522.30.
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On a smaller timeframe (hourly), the stock has shown a pattern breakout.
“On the hourly chart, the stock has given a Pole and Pennant breakout. Keeping the momentum in this stock in view we can see the next target of this stock at 589 (23.6% Fibonacci Extension) followed by 614 (38.2% Fibonacci Extension),” Chabra noted.
The shares of ITI Ltd were locked at their 10% lower circuit of Rs 491.25 on the BSE around 1:10 pm today.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
