ITI Limited: Unveiling a promising trajectory in the telecommunication equipment industry

ITI Limited, a dynamic player in the telecommunications sector, is actively involved in the manufacturing, trading, and servicing of telecommunication equipment, along with providing related services. The company’s primary focus lies in delivering cutting-edge telephone communication services, contributing to a comprehensive spectrum of telecom solutions. Established in 1948 and headquartered in Bangalore, India, ITI Ltd. has emerged as a significant contender in the industry.

Technically, ITI Ltd.’s stock has undergone a compelling journey. After reaching its pinnacle at Rs 151.65 in mid-August 2020, the stock experienced a subsequent retracement. This pullback found stability at a level retracing over 61.8% from the notable surge that commenced in the early weeks of March 2020, aligning around the Rs 44.80 level.

Recent trading sessions have witnessed a surge in buying momentum for the stock, ushering in an upward trajectory after a bullish crossover of the 5-26 and 13-26 Daily Moving Averages (DMA). Notably, a breakout trendline has emerged, effectively connecting the high points of mid-August 2020 (at Rs 151.65) and the second week of July 2021 (at Rs 143.80). This development signifies an extended continuation price pattern that spans over 150 weeks.

In the past two trading sessions, the stock has recorded an impressive rally, surpassing the 10% mark and concluding just below the aforementioned breakout trendline. This surge has been accompanied by substantial weekly trading volumes, totalling more than 15 million shares. The forthcoming confirmation of the breakout hinges on the stock’s closure above the breakout level (Rs 127), thereby eliciting a sense of optimism among investors.

Upon confirmation, the stock sets its sights on a potential target of Rs 160, translating to an approximate gain of 25% from the breakout threshold of Rs 127. This scenario unfolds as a promising prospect for swing traders and short-term investors who are diligently monitoring ITI Ltd.’s performance. The company’s trajectory presents an enticing opportunity, laden with the potential for further upside gains.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.