JINDALSTEL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📊 Chart Patterns & Trend: JINDALSTEL is trading below its 50 DMA (1,029 ₹) but slightly above its 200 DMA (988 ₹), showing mixed signals. The price has corrected from its 52-week high (1,098 ₹) and is consolidating near support zones around 980–1,000 ₹.

📈 Moving Averages: Current price (995 ₹) is under the 50 DMA but above the 200 DMA, indicating short-term weakness but long-term support.

📉 RSI: At 35.6, RSI is near oversold territory, suggesting potential for a short-term rebound.

📉 MACD: Negative at -11.7, confirming bearish sentiment and lack of strong upward momentum.

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

📊 Volume Trends: Current volume (26,99,270) is significantly higher than average weekly volume (13,35,532), showing strong activity, possibly accumulation at lower levels.

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

💹 Entry Zone: 970–990 ₹ (near 200 DMA support).

💹 Exit Zone: 1,050–1,080 ₹ (resistance near 50 DMA and recent highs).

📌 Overall Trend: The stock is in a consolidation phase with bearish undertones, but oversold indicators and strong volume hint at reversal attempts.

Positive

• EPS of 37.4 ₹ with reasonable P/E of 20.9, in line with industry average.
• Debt-to-equity ratio of 0.13 indicates low leverage.
• DII holdings increased by 0.65%, showing domestic institutional confidence.
• Strong trading volume suggests accumulation interest.

Limitation

• Quarterly PAT declined to 921 Cr. from 1,624 Cr., showing earnings pressure.
• ROE (9.37%) and ROCE (11.7%) are modest compared to sector leaders.
• Dividend yield of 0.20% is low for income-focused investors.
• PEG ratio of -1.08 highlights weak earnings growth relative to valuation.

Company Negative News

• Quarterly PAT dropped significantly, reflecting earnings volatility.
• FII holdings decreased by 0.33%, showing reduced foreign investor confidence.

Company Positive News

• DII holdings increased, reflecting domestic support.
• Strong trading volume indicates investor activity at lower levels.

Industry

• Industry PE at 20.9 is aligned with JINDALSTEL’s valuation, suggesting fair pricing relative to peers.
• Steel sector benefits from infrastructure growth and industrial demand but remains cyclical.

Conclusion

⚖️ JINDALSTEL is consolidating near support levels with weak momentum but oversold indicators and strong volume suggest potential rebound. Entry around 970–990 ₹ offers favorable risk-reward, while exits near 1,050–1,080 ₹ are optimal. Long-term investors should be cautious due to earnings pressure, while short-term traders may find opportunities in technical rebounds.