JSL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.3

📉 JSL is currently consolidating below its 50 DMA with weakening momentum, though long-term structure remains intact above the 200 DMA.

📊 Technical Analysis

• Trend: The stock is consolidating after a strong uptrend, trading between its 50 DMA (₹767) and 200 DMA (₹708).
• Moving Averages: Price is below the 50 DMA but above the 200 DMA, indicating medium-term weakness but long-term support.
• RSI (41.1): In the lower neutral zone, suggesting mild bearish momentum but not oversold.
• MACD (5.57): Positive but flattening, indicating fading bullish momentum

  TSR

  .

• Bollinger Bands: Price is near the lower band, suggesting potential support but also volatility

  TSR

  .

• Volume: Current volume (8.17L) is slightly above 1-week average (7.87L), indicating stable interest.

Sources: TopStockResearch

TSR

, Moneycontrol

MoneyControl

, Trendlyne

Trendlyne

🎯 Entry & Exit Zones

• Support Zone: ₹730 – ₹740 (recent base and lower Bollinger Band)
• Resistance Zone: ₹765 – ₹780 (50 DMA and minor swing highs)
• Optimal Entry: ₹735 – ₹745 (if RSI stabilizes and MACD remains positive)
• Exit Target: ₹775 – ₹790 (short-term resistance zone)

✅ Positive

• Strong ROCE (19.9%) and ROE (17.3%) indicate efficient capital deployment.
• EPS of ₹33.7 and low debt-to-equity ratio (0.27) reflect solid fundamentals.
• FII holding increased by 0.16%, showing foreign investor confidence.

⚠️ Limitation

• Price is below 50 DMA and RSI is weak, indicating short-term bearishness.
• MACD is flattening, suggesting loss of upward momentum.
• PEG ratio of -9.63 may reflect valuation concerns or inconsistent earnings growth.

📉 Company Negative News

• Quarterly PAT declined from ₹798 Cr. to ₹642 Cr., a drop of 11%.
• DII holding decreased slightly by 0.01%, indicating cautious domestic sentiment.

📈 Company Positive News

• Stock has gained 77.2% over the past year, reflecting strong long-term performance.
• Stable volume and technical support above 200 DMA suggest resilience.

🏭 Industry

• Industry P/E is 22.3, close to JSL’s 23.4, indicating fair valuation relative to peers.
• Steel sector is cyclical and influenced by global demand, infrastructure spending, and commodity prices.

🧾 Conclusion

• JSL is currently consolidating with weakening short-term momentum but strong long-term structure.
• Short-term traders should wait for RSI to rise above 45 and MACD to turn upward before entering.
• Long-term investors may consider accumulating near ₹740 with a target of ₹790, maintaining stop-loss below ₹725.