ITI Share Price Soars 40% in May – Should You Buy, Sell or Hold This PSU Stock?

Posted on May 29, 2025, by Niftynews

The ITI share price has been on a tear in May, delivering over 40% returns so far this month. On May 29, the stock rose nearly 8% in morning trade, extending its bullish streak and attracting investor attention. With improved financials in Q4FY25 and strong technical signals, many are now wondering: Should you buy ITI shares at current levels or wait for a correction?

Let’s explore the stock’s performance, financial results, chart patterns, and what market experts are saying.

ITI Share Price Movement: May Rally in Full Swing

On May 29, ITI stock opened at ₹349.80 and surged to an intraday high of ₹365.95 before settling 4.26% higher at ₹354.50 on the BSE. This is the fourth consecutive session of gains, pushing monthly returns to over 40%.

52-Week Range:

• High: ₹592.85 (January 7, 2025)
• Low: ₹210.20 (October 25, 2024)

1-Year Performance:

• Up over 20% YoY

This PSU telecom stock has also outperformed the broader indices in May, standing out among its peers in the public sector space.

Q4FY25 Results: A Turnaround in Progress

The recent rally in the ITI share price was boosted by better-than-expected Q4 results, pointing to a potential turnaround.

The revenue surge and narrowing losses suggest that the company is executing its revival strategy effectively.

Strategic Moves: Government Support Still Strong

ITI also received a boost from a CAPEX infusion of ₹59 crore by the Government of India, in line with a BIFR directive. The equity allotment to the President of India signals continued government support, which can be pivotal for investor confidence.

What’s Fueling the ITI Share Price Rally?

• Strong Q4 recovery with revenue jumping nearly 74% YoY
• Government backing through preferential equity allotment
• Technical breakout from a 13-week consolidation pattern
• Positive sentiment in broader small-cap and PSU segments

Expert Views: Bullish Signs, Targeting ₹400+

🔹 Anshul Jain, Head of Research, Lakshmishree Investments

“ITI broke out from a 13-week consolidation forming a double bottom at ₹270. Volume accumulation supports this breakout. It now targets the 50% Fibonacci retracement level of ₹411.”

Why it matters: The breakout suggests sustained upside, with ₹400-₹411 in focus for medium-term gains.

🔹 Jigar S. Patel, Senior Equity Analyst, Anand Rathi

“Reclaiming ₹330 – a former resistance – is a sign of strength. A sustained close above this level supports a bullish trajectory towards ₹400.”

Key Indicator: RSI above 60 on weekly charts – suggests continued bullish momentum.

Technical Analysis Snapshot

• Trend: Bullish
• RSI: Holding above 60 (strong)
• Support Zones: ₹330 and ₹280
• Resistance Levels: ₹400 and ₹411
• Chart Patterns: Double bottom breakout, volume-supported rally

Should You Buy ITI Stock Now?

✅ Reasons to Buy

• Strong Q4 financial turnaround
• Bullish chart breakout with volume
• Long-term government support in telecom CAPEX
• Technical indicators support continuation of trend
• Target zone between ₹400-₹411 looks attainable

⚠️ Risks to Watch

• High volatility after sharp monthly gains
• Profit booking may occur near resistance levels
• Historically inconsistent earnings and profitability

Final Verdict: ITI Share Price Outlook – Cautiously Bullish

With a 40% surge in May, ITI has entered bullish territory backed by fundamental improvements and technical strength. Investors who entered earlier may consider holding, while new investors should watch for dips closer to ₹330–₹340 as potential entry points.

If the stock manages a sustained weekly close above ₹365, the next upside target lies near ₹400, followed by ₹411 based on Fibonacci retracement levels.

Quick Tips for Investors:

• Current Position Holders: Continue holding with a trailing stop-loss at ₹330
• New Investors: Wait for a retracement near ₹340 for better risk-reward
• Target (Short-Mid Term): ₹400 – ₹411
• Stop-loss Zone: ₹320 – ₹330