JINDALSAW - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.1

📊 Chart Patterns & Trend: JINDALSAW is trading below both its 50 DMA (174 ₹) and 200 DMA (210 ₹), reflecting short-term weakness. The price has corrected sharply from its 52-week high (315 ₹) and is consolidating near support levels around 160 ₹.

📈 Moving Averages: Current price (162 ₹) is below both DMAs, confirming bearish undertones. Sustained trading above 175–180 ₹ would be required to regain momentum.

📉 RSI: At 46.3, RSI is neutral, showing neither oversold nor overbought conditions, but leaning weak.

📉 MACD: Negative at -3.15, confirming bearish sentiment and lack of strong upward momentum.

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

📊 Volume Trends: Current volume (17,14,228) is higher than average weekly volume (10,71,078), showing strong activity, possibly accumulation at lower levels.

🎯 Momentum Signals: Weak short-term signals with bearish bias. Oversold Bollinger positioning and higher volume suggest potential rebound attempts.

💹 Entry Zone: 155–165 ₹ (near strong support levels).

💹 Exit Zone: 185–200 ₹ (resistance near DMA levels).

📌 Overall Trend: The stock is in a consolidation phase with bearish undertones, awaiting stronger breakout confirmation.

Positive

• Low P/E of 7.44 compared to industry average (20.6), indicating undervaluation.
• Strong ROCE of 20.9% and ROE of 17.4% highlight operational efficiency.
• Debt-to-equity ratio of 0.28 shows healthy leverage levels.
• PEG ratio of 0.11 suggests attractive valuation relative to growth.

Limitation

• Price trading below both 50 DMA and 200 DMA signals weak momentum.
• Quarterly profit variation at -83.4% shows earnings volatility.
• Dividend yield of 1.23% is modest for income-focused investors.

Company Negative News

• Quarterly PAT declined sharply to 79.3 Cr. from 364 Cr., showing earnings pressure.
• DII holdings decreased by 0.42%, reflecting reduced domestic institutional confidence.

Company Positive News

• FII holdings increased by 0.23%, showing foreign investor interest.
• Strong ROCE and ROE highlight operational efficiency despite earnings volatility.

Industry

• Industry PE at 20.6 is much higher than JINDALSAW’s P/E, suggesting relative undervaluation.
• Steel and pipe manufacturing sector benefits from infrastructure growth but remains cyclical.

Conclusion

⚖️ JINDALSAW is consolidating near support levels with weak momentum but strong fundamentals. Entry around 155–165 ₹ offers favorable risk-reward, while exits near 185–200 ₹ are optimal. Long-term investors may find value given its low P/E and strong efficiency metrics, though earnings volatility remains a concern.