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Despite a red trading session on Friday (as of now), some stocks are rallying aggressively on the back of high investors’ demand. One such counter is ITI Ltd (NS:) which is engaged in the manufacturing, trading and servicing of telecommunication equipment and rendering other associated and ancillary services. The company has a market capitalization of INR 9,762 crores and competes with rivals such as Tejas Networks (NS:), Vindhya Telelinks Ltd (NS:) etc.
Today, the share price of ITI surged over 6% to INR 110, by 12:20 PM IST as the company notified yesterday after the market closing, that it has bagged an order of INR 25 crores worth of laptops from Kerala Infrastructure and Technology for Education (KITE). These are essentially SmaasH-branded laptops, manufactured under the government’s ‘Make in India’ initiative. During FY22, the company manufactured and supplied over 1,500 SmaasH-branded PCs to various customers including MG university, DIET Karnataka etc.
Image Description: Daily chart of ITI with volume bars at the bottom
Image Source: Investing.com
As the start of the new calendar year is with another order, investors are cock-a-hoop in today’s session which can be seen in the price action and volume activity in the stock. It opened the session with a gap and surged to a high of INR 111.25, the highest level since 21 December 2022. In the midst of today’s rally, the stock also surged past its short-term falling trendline resistance on the daily chart which is implying a continuation of the bullish move from here.
The volume backing today’s move is also impressive. A total of 5.49 million shares exchanged hands so far, which is a significant jump of over 3,100% over the 10-day average volume of 170K shares, increasing the reliability of the breakout.
Further confirmation of the uptrend can be gauged from the 21-day Simple Moving Average (SMA). Moving averages are great trend-identification indicators and probably the simplest ones of the lot. Whenever a stock starts to trade above the moving average, then the trend can be deemed positive, as is the case with ITI shares. The stock soared above the 21-day SMA in today’s session, for the first time after it broke below it on 9 December 2022. Although there have been some spikes above this SMA in the recent past, the stock never managed to close above it.
Today seems to be the day that the bulls might take charge and bolster the stock to the next level of INR 118 in the near future.
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