JSWSTEEL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | JSWSTEEL | Market Cap | 3,00,118 Cr. | Current Price | 1,227 ₹ | High / Low | 1,245 ₹ |
| Stock P/E | 41.6 | Book Value | 341 ₹ | Dividend Yield | 0.23 % | ROCE | 10.2 % |
| ROE | 8.89 % | Face Value | 1.00 ₹ | DMA 50 | 1,168 ₹ | DMA 200 | 1,101 ₹ |
| Chg in FII Hold | -0.18 % | Chg in DII Hold | 0.19 % | PAT Qtr | 979 Cr. | PAT Prev Qtr | 1,493 Cr. |
| RSI | 60.9 | MACD | 19.4 | Volume | 10,85,101 | Avg Vol 1Wk | 19,12,651 |
| Low price | 905 ₹ | High price | 1,245 ₹ | PEG Ratio | -1.58 | Debt to equity | 0.84 |
| 52w Index | 94.7 % | Qtr Profit Var | -28.4 % | EPS | 26.5 ₹ | Industry PE | 21.6 |
📊 JSW Steel (JSWSTEEL) shows moderate fundamentals with ROCE (10.2%) and ROE (8.89%) at modest levels, while valuations are stretched (P/E 41.6 vs. industry 21.6). Technically, the stock is trading above both 50 DMA (1,168 ₹) and 200 DMA (1,101 ₹), with RSI at 60.9 indicating bullish momentum but nearing overbought territory. MACD at 19.4 confirms positive momentum. However, quarterly profits have declined, raising caution. Overall, it is a fair candidate for swing trading with short-term upside potential.
💡 Optimal Entry Price: Around 1,200 ₹ – 1,220 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 1,240 ₹ – 1,250 ₹ (close to 52-week high resistance) or place a stop-loss below 1,180 ₹.
✅ Positive
- Stock trading above both 50 DMA and 200 DMA shows strong bullish trend.
- MACD at 19.4 confirms positive momentum.
- DII holdings increased (+0.19%), showing domestic institutional support.
- EPS of 26.5 ₹ provides earnings visibility.
⚠️ Limitation
- High P/E ratio (41.6) compared to industry average (21.6) indicates overvaluation.
- ROCE (10.2%) and ROE (8.89%) are modest compared to peers.
- Quarterly profit variation (-28.4%) shows earnings weakness.
- PEG ratio (-1.58) suggests poor growth prospects relative to valuation.
📉 Company Negative News
- Quarterly PAT dropped from 1,493 Cr. to 979 Cr., reflecting earnings decline.
- FII holdings decreased (-0.18%), showing reduced foreign investor confidence.
📈 Company Positive News
- Stock trading near 52-week high (94.7% of range), reflecting strong momentum.
- Strong technical indicators support short-term bullishness.
🏭 Industry
- Industry PE at 21.6 vs. JSWSTEEL PE at 41.6 suggests overvaluation compared to peers.
- Steel sector benefits from infrastructure demand but faces margin pressures from raw material costs.
🔎 Conclusion
JSW Steel is technically strong with bullish momentum but fundamentally stretched with declining profits. Swing traders may enter near 1,200 ₹ – 1,220 ₹ with a target around 1,240 ₹ – 1,250 ₹. Stop-loss below 1,180 ₹ is recommended. The stock offers moderate swing trade potential with a rating of 3.9.