JSL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.2

📊 JSL shows strong potential for swing trading. The RSI at 61.2 indicates bullish momentum but is nearing overbought territory, while the positive MACD (9.42) confirms upward strength. The stock is trading above both DMA 50 (767 ₹) and DMA 200 (723 ₹), showing technical support. The optimal entry price would be near 770–780 ₹, close to the 50 DMA. If already holding, consider exiting around 820–830 ₹, near the recent high where resistance may emerge.

✅ Positive

• 📈 EPS of 34.3 ₹ supports strong earnings visibility.
• 💹 ROCE of 19.9% and ROE of 17.3% reflect solid efficiency.
• 📊 P/E of 24.4 is only slightly above industry PE of 20.9, suggesting fair valuation.
• 🌍 FII holdings increased by 0.16%, showing foreign investor confidence.
• 📈 PAT improved slightly from 642 Cr. to 644 Cr. QoQ.
• 💹 52-week index gain of 91.5% highlights strong momentum.
• 📊 Debt-to-equity ratio of 0.26 indicates low leverage risk.

⚠️ Limitation

• 📉 RSI at 61.2 is close to overbought territory, limiting upside potential.
• 📊 PEG ratio of -10.0 signals poor valuation relative to growth.
• 💸 Dividend yield of 0.39% is modest.
• 📉 DII holdings decreased slightly (-0.01%), showing reduced domestic institutional confidence.

🚨 Company Negative News

• 📉 PEG ratio indicates weak growth prospects despite strong earnings.
• 📊 Slight decline in DII stake reflects cautious domestic sentiment.

🌟 Company Positive News

• 📈 PAT growth QoQ shows operational stability.
• 💹 FII stake increased, reflecting foreign investor support.
• 📊 Strong 52-week performance highlights resilience and investor confidence.

🏭 Industry

• 📊 Industry PE at 20.9 suggests sector is moderately valued compared to JSL’s slightly higher valuation.
• 🌍 Stainless steel sector benefits from infrastructure demand and global commodity cycles.

📌 Conclusion

JSL is a good candidate for swing trading. Entry near 770–780 ₹ may provide a favorable setup, while exit around 820–830 ₹ is advisable if already holding. Strong fundamentals, technical support, and momentum are positives, but overbought RSI and weak PEG ratio require disciplined stop-loss management.

Would you like me to also highlight short-term candlestick reversal signals (like bullish engulfing or doji) that could confirm the entry zone near 770–780 ₹?