Here’s a trending stock under Rs 100! Do you own it?
The stock of ITI has soared over 7% despite weak market sentiment.
The shares of ITI have been quite underperforming in the broader market in the past few weeks, having lost over 40% from its 52-week high level. It is below all the key moving averages, and it is medium-term trend is a downtrend. However, Monday’s surge has brought some positivity to the stock. Huge buying interest was seen today at lower levels, as volume was recorded to be greater than the 10-day, 30-day, and 50-day average volume. Interestingly, the stock has formed a double bottom, which is a positive sign.
The technical parameters have turned their pointers upwards after the stock’s strong performance of today. The 14-period daily RSI (47.68) has jumped sharply from its oversold regions and is above its prior swing high. This is a bullish sign. Moreover, the +DMI has crossed above its -DMI and ADX, indicating a change in momentum on the daily timeframe. The OBV has seen a good spike and indicates strong strength from a volume’s perspective. The Elder Impulse System has indicated a fresh buy signal. Meanwhile, the Relative Strength (RS) indicator is above the zero line and above its prior swing high. This indicates relative outperformance of the stock against the broader market. Meanwhile, the KST and TSI indicators have improved and might indicate a bullish crossover in coming days.
The stock is the top gainer in the Nifty 500 universe. Considering its medium-term downtrend, the stock needs to cross and sustain above its 50-DMA level of Rs 93. A move above this level can provide good swing trading opportunities and we can expect the stock to test the level of Rs 100 in times to come. Keep this stock on your watchlist to track its further development.
ITI Limited is engaged in the business of manufacturing, trading, and servicing telecommunication equipment and rendering other associated and ancillary services. It is a midcap company with a market capitalisation of over Rs 7800 crore.
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DisclaimerInvestment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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