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JINDALSTEL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

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

Technical Rating: 3.6

Stock Code JINDALSTEL Market Cap 1,24,767 Cr. Current Price 1,223 ₹ High / Low 1,306 ₹
Stock P/E 28.3 Book Value 515 ₹ Dividend Yield 0.16 % ROCE 11.7 %
ROE 9.37 % Face Value 1.00 ₹ DMA 50 1,195 ₹ DMA 200 1,091 ₹
Chg in FII Hold 0.17 % Chg in DII Hold 0.04 % PAT Qtr 710 Cr. PAT Prev Qtr 921 Cr.
RSI 50.5 MACD 21.1 Volume 9,14,095 Avg Vol 1Wk 10,34,334
Low price 833 ₹ High price 1,306 ₹ PEG Ratio -1.46 Debt to equity 0.13
52w Index 82.5 % Qtr Profit Var -39.0 % EPS 32.6 ₹ Industry PE 22.9

📊 Chart & Indicators

- Current price (₹1,223) is above DMA 50 (₹1,195) and DMA 200 (₹1,091), confirming bullish momentum.

- RSI at 50.5 indicates neutral momentum, neither overbought nor oversold.

- MACD at 21.1 shows bullish crossover, supporting upward bias.

- Bollinger Bands: price near mid-band, suggesting consolidation with mild bullish tilt.

- Volume (9.1 Lakh) below average (10.3 Lakh), showing reduced participation.

🎯 Entry & Exit Zones

- **Entry Zone:** ₹1,200 – ₹1,225 (near DMA support).

- **Exit Zone:** ₹1,285 – ₹1,306 (recent high resistance).

- **Stop-Loss:** Below ₹1,180 (DMA 50 breakdown risk).

📈 Trend Status

- The stock is **consolidating with bullish undertone**.

- Sustaining above ₹1,225 could trigger momentum toward ₹1,285+.

- Weak volume suggests cautious accumulation.

✅ Positive

- Price trading above both DMA 50 and DMA 200.

- EPS at ₹32.6 with fair valuation (P/E 28.3 vs industry 22.9).

- Low debt-to-equity ratio (0.13).

- Strong 52-week index gain of 82.5%.

- Institutional inflows: FII (+0.17%) and DII (+0.04%).

⚠️ Limitation

- Quarterly PAT declined (₹921 Cr. → ₹710 Cr., -39%).

- ROCE (11.7%) and ROE (9.37%) remain modest.

- PEG ratio (-1.46) indicates weak earnings growth outlook.

- Dividend yield at 0.16% is low.

- Volume below average, limiting conviction.

📉 Company Negative News

- Sharp decline in quarterly profits.

- Weak profitability metrics despite strong price momentum.

📈 Company Positive News

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

- Strong long-term price performance with 52-week gain of 82.5%.

- Institutional inflows provide confidence.

🏭 Industry

- Industry PE at 22.9 vs JINDALSTEL’s 28.3, showing premium valuation.

- Steel sector supported by infrastructure demand but facing margin pressures from raw material costs.

🔎 Conclusion

JINDALSTEL is consolidating with bullish undertone, supported by DMA crossover, MACD, and strong long-term price performance. Fundamentals remain modest with declining profits and overvaluation relative to peers. Entry near ₹1,200–₹1,225 is favorable, with exits around ₹1,285–₹1,306. Trend remains bullish short-term but requires stronger earnings and volume participation for sustained upside.

Would you like me to extend this into a peer benchmarking overlay comparing JINDALSTEL with JSW Steel, Tata Steel, and Jindal Saw to highlight relative strength and valuation?

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