JINDALSAW - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 2.4

📉 JINDALSAW is currently reversing with oversold indicators, weak momentum, and trading well below key moving averages.

📊 Technical Analysis

• Trend: The stock is in a reversal phase, having dropped sharply from its high of ₹343 to ₹175.
• Moving Averages: Price is below both 50 DMA (₹199) and 200 DMA (₹228), confirming bearish sentiment.
• RSI (27.3): Deeply oversold, indicating potential for a technical bounce but no confirmation yet.
• MACD (-7.86): Strongly negative, reinforcing bearish momentum.
• Bollinger Bands: Price is near the lower band, suggesting oversold conditions and high volatility.
• Volume: Current volume (20.16L) is below 1-week average (25.33L), showing declining interest.

Sources

TSR

+2

🎯 Entry & Exit Zones

• Support Zone: ₹170 – ₹175 (recent low and psychological level)
• Resistance Zone: ₹195 – ₹200 (50 DMA and prior breakdown zone)
• Optimal Entry: ₹175 – ₹180 (if RSI stabilizes and MACD flattens)
• Exit Target: ₹195 – ₹205 (short-term recovery zone)

✅ Positive

• Strong ROCE (20.9%) and ROE (17.4%) indicate efficient capital use.
• PEG ratio of 0.12 suggests undervaluation relative to growth.
• Low debt-to-equity ratio (0.28) reflects financial stability.

⚠️ Limitation

• Price is trading well below key moving averages, indicating sustained bearish pressure.
• RSI and MACD are deeply negative, showing weak momentum.
• Volume is declining, suggesting lack of buying interest.

📉 Company Negative News

• Quarterly PAT dropped from ₹364 Cr. to ₹79.3 Cr., an 83.4% decline.
• DII holding decreased by 0.42%, reflecting reduced domestic institutional confidence.

📈 Company Positive News

• FII holding increased by 0.23%, showing some foreign investor interest.
• EPS of ₹21.8 and dividend yield of 1.13% support long-term value.

🏭 Industry

• Industry P/E is 24.2, significantly higher than JINDALSAW’s 8.07, suggesting relative undervaluation.
• Steel and industrial products sector is cyclical and sensitive to global demand and infrastructure spending.

🧾 Conclusion

• JINDALSAW is currently reversing with weak technical indicators and oversold conditions.
• Short-term traders should wait for RSI to rise above 35 and MACD to flatten before entering.
• Long-term investors may consider accumulating near ₹175 with a target of ₹200, maintaining stop-loss below ₹170.