JBMA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 2.8

📊 Chart Patterns & Trend: JBMA is trading below both its 50 DMA (614 ₹) and 200 DMA (663 ₹), reflecting a bearish structure. The stock has corrected sharply from its 52-week high of 863 ₹ and is hovering near support zones.

📈 Moving Averages: Current price (571 ₹) is below both short-term and long-term averages, confirming downward momentum. No bullish crossover is visible.

📉 RSI: At 25.4, RSI is in oversold territory, suggesting potential for a short-term rebound if buying interest emerges.

📉 MACD: Negative at -21.3, reinforcing bearish sentiment and absence of strong upward momentum.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (2,28,042) is significantly higher than average weekly volume (1,62,280), showing strong selling pressure but also potential accumulation at lower levels.

🎯 Momentum Signals: Short-term signals remain weak, but oversold RSI and Bollinger Band positioning hint at a possible technical bounce.

💹 Entry Zone: 490–520 ₹ (near strong support levels).

💹 Exit Zone: 610–640 ₹ (resistance near DMA levels).

📌 Overall Trend: The stock is in a reversal attempt from oversold conditions, but broader trend remains bearish.

Positive

• Quarterly PAT improved to 45.1 Cr. from 32.1 Cr. (48.2% growth).
• Strong ROCE of 14.3% indicates efficient capital usage.
• High trading volume suggests investor interest at lower levels.

Limitation

• Extremely high P/E of 91.9 compared to industry average (30.0).
• Debt-to-equity ratio of 1.56 indicates heavy leverage.
• PEG ratio of -17.6 highlights weak earnings growth relative to valuation.

Company Negative News

• FII holdings decreased by 0.40%, showing reduced foreign investor confidence.
• DII holdings also slightly declined (-0.01%).

Company Positive News

• Quarterly profit growth of 48.2% shows operational improvement.
• Strong trading activity indicates accumulation interest despite bearish trend.

Industry

• Industry PE at 30.0 is much lower than JBMA’s valuation, suggesting sector peers are more reasonably priced.
• Auto ancillary sector remains cyclical but benefits from rising demand in EV and OEM expansions.

Conclusion

⚖️ JBMA is oversold with RSI at 25.4 and trading below key moving averages, indicating bearish momentum but potential for a short-term rebound. Entry near 490–520 ₹ offers favorable risk-reward, while exits around 610–640 ₹ are optimal. Long-term investors should be cautious due to high leverage and stretched valuations.