JINDALSAW - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.2

📊 JINDALSAW shows mixed potential for swing trading. The RSI at 46.3 indicates neutral momentum, while the negative MACD (-3.15) suggests short-term weakness. The stock is trading below both DMA 50 (174 ₹) and DMA 200 (210 ₹), signaling caution. The optimal entry price would be near 158–162 ₹, close to support levels. If already holding, consider exiting around 172–178 ₹, where resistance from DMA 50 may cap upside.

✅ Positive

• 📈 EPS of 21.8 ₹ supports earnings strength.
• 💹 ROCE of 20.9% and ROE of 17.4% reflect strong efficiency.
• 📊 Very low P/E of 7.44 compared to industry PE of 20.6, suggesting undervaluation.
• 💸 Dividend yield of 1.23% provides shareholder return.
• 📊 PEG ratio of 0.11 indicates undervaluation relative to growth.
• 🌍 FII holdings increased by 0.23%, showing foreign investor confidence.

⚠️ Limitation

• 📉 Current price below DMA 50 and DMA 200 shows technical weakness.
• 📊 52-week index gain of only 5.40% highlights limited momentum compared to peers.
• 📉 Trading near lower range of 153 ₹ indicates weak sentiment.
• 📊 DII holdings decreased by 0.42%, showing reduced domestic institutional confidence.

🚨 Company Negative News

• 📉 PAT declined sharply from 364 Cr. to 79.3 Cr. QoQ.
• 📊 Quarterly profit variation at -83.4% highlights significant earnings pressure.

🌟 Company Positive News

• 📈 Strong efficiency metrics (ROCE 20.9%, ROE 17.4%) support long-term fundamentals.
• 💹 FII stake increased, reflecting foreign investor support despite earnings decline.

🏭 Industry

• 📊 Industry PE at 20.6 suggests sector is moderately valued compared to JINDALSAW’s lower valuation.
• 🌍 Steel and pipe manufacturing sector benefits from infrastructure demand and industrial expansion.

📌 Conclusion

JINDALSAW presents a cautious swing trade opportunity. Entry near 158–162 ₹ may provide a rebound, while exit around 172–178 ₹ is advisable if already holding. Strong efficiency and undervaluation are positives, but sharp profit decline and weak technicals limit upside. Traders should apply strict stop-loss discipline.

Would you like me to also highlight short-term candlestick reversal signals (like hammer or bullish engulfing) that could confirm the entry zone near 158–162 ₹?