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JINDALSAW - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.7

Last Updated Time : 03 May 26, 11:24 am

Technical Rating: 3.7

Stock Code JINDALSAW Market Cap 14,245 Cr. Current Price 223 ₹ High / Low 260 ₹
Stock P/E 18.2 Book Value 197 ₹ Dividend Yield 0.90 % ROCE 8.84 %
ROE 6.39 % Face Value 1.00 ₹ DMA 50 205 ₹ DMA 200 200 ₹
Chg in FII Hold -0.63 % Chg in DII Hold 2.29 % PAT Qtr 114 Cr. PAT Prev Qtr 227 Cr.
RSI 53.6 MACD 12.0 Volume 40,17,176 Avg Vol 1Wk 59,67,768
Low price 153 ₹ High price 260 ₹ PEG Ratio 1.59 Debt to equity 0.22
52w Index 64.9 % Qtr Profit Var -76.0 % EPS 12.3 ₹ Industry PE 22.1

📊 Chart & Indicators

- Current price (₹223) is above DMA 50 (₹205) and DMA 200 (₹200), confirming bullish momentum.

- RSI at 53.6 indicates balanced momentum, not overbought.

- MACD at 12.0 shows bullish crossover, supporting upward bias.

- Bollinger Bands: price near mid-to-upper band, suggesting continuation with mild risk of pullback.

- Volume (40.1 Lakh) below average (59.6 Lakh), showing reduced participation.

🎯 Entry & Exit Zones

- **Entry Zone:** ₹215 – ₹225 (near DMA support).

- **Exit Zone:** ₹250 – ₹260 (recent high resistance).

- **Stop-Loss:** Below ₹210 (DMA breakdown risk).

📈 Trend Status

- The stock is **trending upward short-term** with bullish bias.

- Sustaining above ₹225 could lead to further upside toward ₹250+.

- Weak volume suggests cautious accumulation.

✅ Positive

- Price trading above both DMA 50 and DMA 200.

- EPS at ₹12.3 with fair valuation (P/E 18.2 vs industry 22.1).

- Low debt-to-equity ratio (0.22).

- DII holdings increased (+2.29%), showing strong domestic support.

- 52-week index gain of 64.9% highlights long-term strength.

⚠️ Limitation

- Quarterly PAT declined sharply (₹227 Cr. → ₹114 Cr., -76%).

- ROCE (8.84%) and ROE (6.39%) remain modest.

- FII holdings decreased (-0.63%), showing reduced foreign confidence.

- Dividend yield at 0.90% is modest.

- Volume below average, limiting conviction.

📉 Company Negative News

- Sharp decline in quarterly profits.

- Weak foreign institutional participation.

- Reduced earnings momentum despite price strength.

📈 Company Positive News

- Domestic institutional inflows (+2.29%) provide confidence.

- Technical indicators (MACD, DMA crossover) showing bullish strength.

- Strong long-term price performance with 52-week gain of 64.9%.

🏭 Industry

- Industry PE at 22.1 vs JINDALSAW’s 18.2, showing undervaluation relative to peers.

- Steel and pipe manufacturing sector supported by infrastructure demand but facing cyclical pressures.

🔎 Conclusion

JINDALSAW is trending upward with bullish signals from DMA crossover, MACD, and long-term price strength. Fundamentals remain attractive with undervaluation relative to peers, though sharp profit decline and reduced FII interest suggest caution. Entry near ₹215–₹225 is favorable with exits around ₹250–₹260. Trend remains bullish short-term but requires stronger volume and earnings recovery for sustained upside.

Would you like me to extend this into a sector overlay comparing JINDALSAW with peers like Jindal Steel & Power and Tata Steel for relative valuation and momentum benchmarking?

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