JSL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | JSL | Market Cap | 59,845 Cr. | Current Price | 726 ₹ | High / Low | 884 ₹ |
| Stock P/E | 22.0 | Book Value | 229 ₹ | Dividend Yield | 0.42 % | ROCE | 18.0 % |
| ROE | 15.5 % | Face Value | 2.00 ₹ | DMA 50 | 752 ₹ | DMA 200 | 749 ₹ |
| Chg in FII Hold | -0.66 % | Chg in DII Hold | -0.08 % | PAT Qtr | 746 Cr. | PAT Prev Qtr | 685 Cr. |
| RSI | 36.5 | MACD | -8.48 | Volume | 4,82,634 | Avg Vol 1Wk | 4,62,366 |
| Low price | 633 ₹ | High price | 884 ₹ | PEG Ratio | 2.07 | Debt to equity | 0.24 |
| 52w Index | 36.9 % | Qtr Profit Var | -6.58 % | EPS | 34.5 ₹ | Industry PE | 18.5 |
📊 Chart & Trend Analysis:
JSL is trading below both its 50 DMA (₹752) and 200 DMA (₹749), reflecting short-term weakness. RSI at 36.5 indicates oversold conditions, suggesting potential for a rebound. MACD at -8.48 confirms bearish crossover. Bollinger Bands place price near the lower band, with support around ₹720.
📈 Momentum Signals:
- Short-term momentum is weak, though volume (4.82L) is slightly above weekly average (4.62L).
- Support zone: ₹710 – ₹725.
- Resistance zone: ₹750 – ₹770.
- Break above ₹770 could trigger recovery toward ₹800+, while failure to hold ₹710 may extend downside.
🔎 Trend Status:
Currently consolidating with bearish undertones. A reversal requires stronger volume and breakout above 50 DMA.
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Positive
✔ EPS at ₹34.5 supports valuation strength.
✔ ROE (15.5%) and ROCE (18.0%) highlight efficient capital use.
✔ Debt-to-equity ratio at 0.24 indicates low leverage risk.
✔ Strong market cap and sector positioning.
Limitation
⚠ Price trading below both DMA levels.
⚠ RSI and MACD confirm weak momentum.
⚠ Quarterly PAT decline (₹685 Cr → ₹746 Cr with -6.58% variation).
⚠ PEG ratio at 2.07 suggests stretched valuation.
Company Negative News
📉 Decline in foreign institutional holdings (-0.66%).
📉 Weak quarterly profit variation.
📉 Technical weakness below DMA levels.
Company Positive News
📢 Stable domestic institutional support (-0.08% marginal decline).
📢 Strong fundamentals with healthy ROE/ROCE.
📢 Sector demand outlook remains supportive.
Industry
🌐 Industry PE at 18.5 vs JSL’s 22.0 — premium valuation.
🌐 Steel sector supported by infrastructure demand but facing margin pressures from raw material costs.
Conclusion
JSL is consolidating with bearish bias but oversold RSI suggests potential rebound. Entry near ₹710–₹725 offers cautious positioning, with exit targets around ₹750–₹770. Fundamentals remain strong, though valuation is stretched and profit growth is slowing. Traders should wait for breakout confirmation above 50 DMA before aggressive accumulation.
Would you like me to refine this into a swing trade roadmap with layered medium-term targets, or expand into a peer benchmarking overlay comparing JSL against Tata Steel and JSW Steel?