This Stock Skyrocketed 18% Today; Defies Market Gloom in Style!

  • Stock Market Analysis

Despite closing on an extremely positive note on Tuesday, the broader markets opened today’s session in the red zone and have been falling since morning. The Nifty 50 index is trading with a decent cut of 1.44% to 15,415 and the Sensex was down 1.34% to 51,819 by 3:15 PM IST.

With all sectoral indices trading in the red zone, and most of the stocks falling between 5%  - 10%, one lesser-known stock that is making headlines today is ITI Ltd (NS: ITEL ). The share price of ITI skyrocketed by over 18% to the day’s high of INR 106.3, which is the highest price since 21 February 2022. 

This massive outperformance in a gloomy market shows high interest from market participants which can also be depicted by the equally high spike in the volume figures. Before the closing, the stock clocked an exorbitant volume of 19.5 million shares, which is the highest one-day volume since mid-2020. Also, today’s volume surged over 1,700% compared to the 10-day average of 1.1 million shares.

Image Description: Daily chart of ITI with volume bars at the bottom

Image Source: Investing.com

This is not the first time that ITI shares have clocked an unusual volume in recent times. On 20 June 2022, a total of over 8 million shares exchanged hands on the NSE, while volume on the BSE stood at 257K shares, which is a relatively high figure for the stock’s trading on the BSE. Yesterday, the company also gave a clarification to the BSE on this unusual volume activity stating the company is not aware of any event that could affect the price and volume of the stock.  

ITI shares have cleared the nearest resistance of INR 100 - INR 99 with a bang! However, the share price of ITI would now be facing another stiff resistance of INR 103 - INR 106, exactly where the stock faced a bit of selling pressure during the day. 

Despite a healthy gain today, the shares of ITI are still noticeably down from their all-time high of INR 143.8, giving investors a decent potential of over 30% towards the high. However, it is unsure whether or not the stock would break its previous highs in the near term as border market conditions are currently highly volatile. 

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