JIOFIN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | JIOFIN | Market Cap | 1,53,967 Cr. | Current Price | 242 ₹ | High / Low | 339 ₹ |
| Stock P/E | 221 | Book Value | 45.9 ₹ | Dividend Yield | 0.21 % | ROCE | 2.64 % |
| ROE | 2.22 % | Face Value | 10.0 ₹ | DMA 50 | 285 ₹ | DMA 200 | 295 ₹ |
| Chg in FII Hold | -0.30 % | Chg in DII Hold | 0.58 % | PAT Qtr | 73.1 Cr. | PAT Prev Qtr | 456 Cr. |
| RSI | 18.4 | MACD | -12.5 | Volume | 1,47,00,657 | Avg Vol 1Wk | 1,56,37,833 |
| Low price | 199 ₹ | High price | 339 ₹ | PEG Ratio | 4.57 | Debt to equity | 0.00 |
| 52w Index | 31.2 % | Qtr Profit Var | -2.79 % | EPS | 1.10 ₹ | Industry PE | 22.5 |
📉 Chart & Trend Analysis: JIOFIN is trading at ₹242, well below its 50 DMA (₹285) and 200 DMA (₹295), signaling weak technical strength. RSI at 18.4 indicates extreme oversold conditions, suggesting potential for a short-term bounce. MACD at -12.5 confirms bearish momentum. Bollinger Bands show price hugging the lower band, reflecting sustained selling pressure. Current volume (1.47 Cr) is slightly below the 1-week average (1.56 Cr), showing steady but weak participation.
🔑 Momentum Signals: Short-term momentum is bearish with immediate support at ₹230 and major support at ₹199 (recent low). Resistance lies at ₹285–₹295 (DMA zone). Optimal entry zone: ₹230–₹240 for risk-managed traders. Exit zone: ₹285–₹295 if recovery occurs. Trend status: Reversing downward.
Positive ✅
- Debt-to-equity ratio of 0.00 ensures zero leverage risk.
- DII holding increased (+0.58%), reflecting domestic institutional support.
- Dividend yield of 0.21% adds modest investor appeal.
Limitation ⚠️
- Stock trading well below both 50 DMA and 200 DMA, confirming weak technical strength.
- Extremely high P/E (221) compared to industry PE (22.5) suggests severe overvaluation.
- ROCE (2.64%) and ROE (2.22%) are very modest, showing weak efficiency.
- PEG ratio of 4.57 highlights stretched valuation relative to growth.
- Quarterly profit variation (-2.79%) indicates earnings volatility.
Company Negative News 📉
- FII holding decreased (-0.30%), showing reduced foreign investor confidence.
- Quarterly PAT dropped sharply to ₹73.1 Cr from ₹456 Cr, reflecting earnings pressure.
- Stock has fallen from 52-week high of ₹339 to ₹242, eroding sentiment.
Company Positive News 📊
- DII inflows (+0.58%) highlight domestic confidence in the company.
- Zero debt provides financial flexibility for future growth.
Industry 🌐
- Industry PE at 22.5 is far lower than JIOFIN’s PE of 221, suggesting sector peers may be more attractively valued.
- Financial services sector outlook remains positive with demand-driven growth opportunities, but valuations are critical.
Conclusion 📝
JIOFIN is currently in a bearish reversal phase, trading well below key moving averages with extremely weak momentum indicators. While fundamentals show zero debt and institutional support, high valuation and declining profits remain major concerns. Risk-tolerant traders may consider entries near ₹230–₹240 with exits around ₹285–₹295, while long-term investors should wait for confirmation of trend reversal above the 200 DMA.
Would you like me to also prepare a peer benchmarking overlay comparing JIOFIN with NBFC peers like Bajaj Finance, Aditya Birla Capital, and L&T Finance to highlight relative strength and valuation?