JSL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.2

📊 Chart Patterns & Trend: JSL is trading near its 52-week high (826 ₹) and comfortably above both its 50 DMA (767 ₹) and 200 DMA (723 ₹), reflecting strong bullish momentum. The price action suggests an uptrend continuation with minor consolidation near resistance.

📈 Moving Averages: Current price (798 ₹) above both DMAs confirms strength and trend continuation. Support lies around 770–780 ₹.

📉 RSI: At 61.2, RSI is moderately high, indicating strong momentum but not yet overbought.

📈 MACD: Positive at 9.42, confirming bullish crossover and sustained upward momentum.

📊 Bollinger Bands: Price is near the upper band, showing strong buying interest. Minor pullbacks possible but trend remains intact.

📊 Volume Trends: Current volume (3,20,567) is slightly below average weekly volume (4,00,593), suggesting moderate participation. A breakout above 826 ₹ would require stronger volume confirmation.

🎯 Momentum Signals: Strong bullish signals with price above DMAs, positive MACD, and RSI in healthy range.

💹 Entry Zone: 770–785 ₹ (near 50 DMA support).

💹 Exit Zone: 820–840 ₹ (near 52-week high resistance).

📌 Overall Trend: The stock is trending upward with strong bullish bias, supported by technical indicators.

Positive

• EPS of 34.3 ₹ with strong ROE of 17.3% and ROCE of 19.9%.
• Low debt-to-equity ratio of 0.26 indicates financial stability.
• FII holdings increased by 0.16%, showing foreign investor confidence.
• Quarterly PAT growth of 9.27% indicates operational consistency.

Limitation

• PEG ratio of -10.0 highlights weak earnings growth relative to valuation.
• Dividend yield of 0.39% is modest for income-focused investors.
• Volume slightly below average, requiring stronger participation for breakout above highs.

Company Negative News

• DII holdings decreased marginally (-0.01%), showing reduced domestic institutional confidence.

Company Positive News

• Quarterly PAT improved to 644 Cr. from 642 Cr., showing stable earnings.
• FII holdings increased, reflecting foreign investor interest.
• Stock trading near 52-week high, showing strong momentum.

Industry

• Industry PE at 20.9 is lower than JSL’s P/E of 24.4, suggesting slight premium valuation.
• Steel sector benefits from infrastructure growth and industrial demand, supporting long-term prospects.

Conclusion

⚖️ JSL is in a strong uptrend, trading near its 52-week high with bullish technical signals. Entry around 770–785 ₹ offers favorable risk-reward, while exits near 820–840 ₹ are optimal. Long-term investors may find value given strong efficiency metrics, though premium valuation and modest dividend yield should be considered.