ITI shares dive 17% after scaling 52-week high level today; here's what tech charts indicate

Shares of ITI jumped 8.62 per cent in Tuesday's trade to hit their one-year high-value of Rs 592.85 against a previous close of Rs 545.80. However, the gain was short-lived as the stock fell sharply as the session progressed. It tumbled 17.14 per cent from the mentioned high level to hit a day low of Rs 491.25. Despite today's drop, ITI shares have soared 25.90 per cent in the last five sessions.

Bourses BSE and NSE have put the securities of ITI under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

Exchanges sought clarification from the state-run firm over this significant movement in shares price. The PSU, in response, said, "We wish to confirm that as on date there are no matters/ events which is pending for disclosures to the Stock Exchanges that may have a bearing on the price / volume behaviour in the Company's scrip. As regards the volume of shares traded /share price, are purely based on market conditions and the Company is not responsible for any increase or fall in volume or share price or any changes in stock market conditions."

Technically, the scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 69.58. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a negative price-to-equity (P/E) ratio of 94.11 against a price-to-book (P/B) value of 29.72. Earnings per share (EPS) stood at (-)5.22 with a return on equity (RoE) of (-)31.60.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, suggested investors booking profits at current levels.

Around 16.16 lakh shares changed hands at the time of writing this story. The figure was lower than the two-week average volume of 16.72 lakh shares. Turnover on the counter came at Rs 85.74 crore, commanding a market capitalisation (m-cap) of Rs 47,203.57 crore.

ITI is a central PSU under the ministry of communication. Last checked, the government held a 90 per cent stake in the state-owned firm.