ITI Ltd Technical Momentum Shifts to Bearish Amid Market Pressure

Technical Trend Shift and Price Movement

ITI Ltd’s current market price stands at ₹282.60, down 2.23% from the previous close of ₹289.05. The stock’s intraday range on 17 February 2026 was relatively narrow, with a high of ₹289.30 and a low of ₹281.90. Despite this, the broader technical trend has shifted from mildly bearish to outright bearish, signalling a deterioration in price momentum.

The stock remains well below its 52-week high of ₹372.95, while still comfortably above its 52-week low of ₹233.20. This wide trading range highlights the volatility experienced over the past year, but recent price action suggests the bears are gaining control.

MACD and Momentum Oscillators Confirm Bearish Bias

The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, presents a mixed but predominantly negative picture. On the weekly chart, the MACD is firmly bearish, indicating that the short-term momentum is weakening relative to the longer-term trend. The monthly MACD, while mildly bearish, suggests that the longer-term downtrend is still intact but not yet accelerating.

Relative Strength Index (RSI) readings on both weekly and monthly timeframes currently show no clear signal, hovering in neutral zones. This lack of momentum confirmation from RSI implies that the stock is neither oversold nor overbought, but the absence of bullish RSI divergence adds to the cautious outlook.

Moving Averages and Bollinger Bands Reinforce Downtrend

Daily moving averages for ITI Ltd are decisively bearish, with the stock trading below its key short-term and medium-term averages. This alignment typically signals sustained selling pressure and a lack of buying interest at current levels.

Bollinger Bands, which measure volatility and price extremes, are also indicating bearish conditions on both weekly and monthly charts. The stock price is closer to the lower band, suggesting downward momentum and potential continuation of the current trend.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures, is bearish on the weekly timeframe and mildly bearish on the monthly. This supports the view that momentum is weakening across different time horizons.

Interestingly, Dow Theory analysis shows a mildly bullish signal on the weekly chart but no discernible trend on the monthly scale. This divergence may reflect short-term attempts at recovery amid a longer-term downtrend.

On the volume front, On-Balance Volume (OBV) is neutral weekly but bullish monthly, indicating that despite price weakness, accumulation may be occurring over the longer term. However, this has yet to translate into a sustained price rally.

Performance Comparison with Sensex and Historical Returns

When analysing ITI Ltd’s returns relative to the benchmark Sensex, the stock has underperformed over recent short-term periods. Over the past week, ITI declined by 3.86%, compared to a modest 0.94% drop in the Sensex. The one-month return shows a sharper contrast, with ITI down 6.45% versus a 0.35% decline in the Sensex. Year-to-date, ITI has fallen 8.94%, significantly lagging the Sensex’s 2.28% drop.

However, the longer-term picture is more favourable for ITI. Over one year, the stock has gained 3.95%, though this still trails the Sensex’s 9.66% rise. Over three and five years, ITI has delivered impressive cumulative returns of 184.16% and 132.40% respectively, far outpacing the Sensex’s 35.81% and 59.83% gains. Remarkably, the ten-year return stands at a staggering 1,034.94%, dwarfing the Sensex’s 259.08% over the same period.

Mojo Score and Grade Downgrade Reflect Growing Caution

MarketsMOJO’s proprietary scoring system currently assigns ITI Ltd a Mojo Score of 3.0, categorising the stock as a 'Strong Sell'. This represents a downgrade from the previous 'Sell' rating, effective from 19 January 2026. The Market Cap Grade remains at 3, indicating a mid-tier market capitalisation within its sector.

This downgrade reflects the accumulation of bearish technical signals and the deteriorating price momentum, signalling that investors should exercise caution. The downgrade also aligns with the technical trend shift from mildly bearish to bearish, reinforcing the negative outlook.

Investor Implications and Outlook

For investors, the current technical landscape suggests caution. The confluence of bearish MACD readings, declining moving averages, and negative Bollinger Band positioning points to continued downside risk in the near term. The absence of strong RSI signals means there is no immediate indication of oversold conditions that might prompt a rebound.

While the monthly OBV bullishness hints at some underlying accumulation, this has yet to translate into price strength. The mildly bullish Dow Theory weekly signal may offer a glimmer of hope for short-term recovery, but it remains overshadowed by the broader bearish momentum.

Given the downgrade to a 'Strong Sell' rating and the technical deterioration, investors should consider risk management strategies, including trimming exposure or exploring alternative stocks within the Telecom - Equipment & Accessories sector that demonstrate stronger fundamentals and technical momentum.

Long-term investors may find value in ITI Ltd’s impressive historical returns, but the current technical signals advise prudence until a clearer reversal pattern emerges.

Summary

In summary, ITI Ltd’s technical parameters have shifted decisively towards bearishness, with multiple indicators confirming weakening momentum and increased selling pressure. The downgrade to a 'Strong Sell' rating by MarketsMOJO reflects this negative shift. While the stock’s long-term performance remains commendable, short- and medium-term technical signals counsel caution for investors navigating the current market environment.

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