ITI share price surges 10% to an all-time high, jumps over 40% in 3 days; should you buy? Experts weigh in

ITI share price continued witnessing strong buying interest for the third consecutive session on Tuesday, December 10, as it jumped almost 10 per cent to hit its fresh all-time high of ₹404 on the NSE. ITI share price opened at ₹385 against its previous close of ₹368.10 and surged as much as 9.8 per cent to its record high of ₹404. Around 10:30 am, the stock traded 7.42 per cent higher at ₹395.40 apiece on the NSE. The overall market capitalisation of the stock stood at nearly ₹38,000 crore at that time.

ITI shares jumped 15 per cent in the previous session and over 13 per cent the day before.

ITI share price trend

Shares of the public sector undertaking have gained about 42 per cent in just three days, including today. The PSU stock hit a 52-week low of ₹210 on October 25 this year but has clocked robust gains since then. Considering today's high of ₹404, the stock has surged over 92 per cent in less than two months.

On a monthly scale, the stock is up 38 per cent in December so far, following a 27 per cent gain in November, when it snapped the losing streak of the last three consecutive months.

The stock has risen by 34 per cent over the past six months and by 235 per cent over a longer three-year period.

ITI business overview

ITI, a PSU in the telecommunications technology segment, was established in 1948. According to the company's website, it has manufacturing facilities in Bengaluru, Naini, Rae Bareli, Mankapur, and Palakkad, an R&D centre in Bengaluru, and 25 Marketing, Services & Projects (MSP) centres in India, which are located in Bengaluru, Bhubaneshwar, Chennai, Hyderabad, Kolkata, Lucknow, Mumbai, New Delhi, and 17 other places across the country.

The company manufactures a diverse range of Information and Communication Technology (ICT) products/solutions. It is diversifying towards IOT, Smart city, and other allied telecom products and services, including turnkey project execution to offer solutions in diversified fields.

In Q2FY25, the company's top line surged by 312.3 per cent year-on-year (YoY). The reported loss for the quarter stood at ₹70.33 crore, down 44.19 per cent from the same period last year.

What should investors do?

The stock has surged sharply in the recent past, which appears to have made some technical experts cautious, and they believe it could be time to book some profits in the stock.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, underscored that the ITI share price has broken above the R3 Camarilla weekly resistance level, which is positioned around ₹373.55, as indicated on the chart. However, for this breakout to be sustained and confirmed, the stock must achieve a weekly closing above ₹373.55.

"At this point, it is prudent to book profits at the current price levels, given the magnitude of the recent gains and the critical importance of the weekly close above this resistance. If ITI successfully closes above ₹373.55 on a weekly basis, it will signal further strength in the stock, with the next potential target being the R4 Camarilla resistance at ₹442.55, offering additional upside potential. Until such confirmation is seen, caution is advised for new or additional entries," said Patel.

According to Hardik Matalia, a derivatives analyst at Choice Broking, ITI shares price has staged a strong breakout above its 20-day, 50-day, 100-day, and 200-day EMAs (exponential moving averages). Backed by substantial volumes of 49.28 million, the stock has crossed key resistances, with the 20-day EMA at ₹300.80 now acting as robust support.

Matalia observed that the daily chart of ITI presents a favourable outlook for the upcoming week, indicating the potential for a continued upward move.

"The stock has formed a higher high and higher low pattern, a classic sign of a sustained uptrend. The recent upward swing has successfully breached the neckline around the ₹333 level, establishing an all-time high. This breakout signals the likelihood of a significant follow-through rally in the stock price. Adding to the bullish sentiment, the surge in trading volume reflects increasing market interest. The formation of a strong bullish candle that engulfs the preceding four months’ candles underscores the potential for continuing the uptrend," Matalia said.

"Investors who entered at lower levels may consider a prudent approach by booking partial profits at the current market price ( ₹395.80). Simultaneously, setting trailing stop-loss orders near the ₹350 level can help safeguard gains and manage risk effectively. Overall, ITI’s technical structure and strong volume support suggest a promising outlook, with the potential for further gains in the near term," said Matalia.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.