JSWSTEEL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.5

📊 JSWSTEEL shows moderate potential for swing trading. The RSI at 36.5 suggests the stock is nearing oversold territory, which may trigger a rebound. However, the negative MACD (-18.8) and declining quarterly PAT highlight caution. The stock is trading close to its 200 DMA (1,074 ₹), which may act as support. The optimal entry price would be near 1,050–1,070 ₹. If already holding, consider exiting around 1,120–1,140 ₹, where resistance from the 50 DMA may cap upside.

✅ Positive

• 📈 EPS of 28.6 ₹ supports earnings visibility.
• 🌍 FII holdings increased by 0.14%, showing foreign investor confidence.
• 💹 52-week index gain of 58.2% highlights strong momentum.
• 📊 Current price near 200 DMA support zone offers potential rebound opportunity.

⚠️ Limitation

• 📉 P/E of 34.8 is higher than industry PE of 20.9, suggesting relative overvaluation.
• 📊 PEG ratio of -1.32 signals poor valuation relative to growth.
• 📉 ROCE of 10.2% and ROE of 8.89% reflect modest efficiency.
• 💸 Dividend yield of 0.26% is low.
• 📉 Debt-to-equity ratio of 0.84 indicates moderate leverage risk.

🚨 Company Negative News

• 📉 PAT declined from 2,178 Cr. to 1,493 Cr. QoQ.
• 📊 DII holdings decreased by 0.06%, showing reduced domestic institutional confidence.

🌟 Company Positive News

• 📈 FII stake increased, reflecting foreign investor support.
• 💹 Strong 52-week performance highlights resilience despite earnings pressure.

🏭 Industry

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

📌 Conclusion

JSWSTEEL offers a cautious swing trade opportunity. Entry near 1,050–1,070 ₹ may provide a rebound, while exit around 1,120–1,140 ₹ is advisable if already holding. Strong momentum and FII support are positives, but high valuation and declining profitability 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 1,050–1,070 ₹?