JSWENERGY - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | JSWENERGY | Market Cap | 98,610 Cr. | Current Price | 561 ₹ | High / Low | 588 ₹ |
| Stock P/E | 110 | Book Value | 130 ₹ | Dividend Yield | 0.36 % | ROCE | 5.82 % |
| ROE | 6.24 % | Face Value | 10.0 ₹ | DMA 50 | 515 ₹ | DMA 200 | 510 ₹ |
| Chg in FII Hold | 0.24 % | Chg in DII Hold | -0.10 % | PAT Qtr | 82.7 Cr. | PAT Prev Qtr | 190 Cr. |
| RSI | 61.9 | MACD | 19.6 | Volume | 19,74,241 | Avg Vol 1Wk | 51,59,673 |
| Low price | 428 ₹ | High price | 588 ₹ | PEG Ratio | 4.01 | Debt to equity | 0.61 |
| 52w Index | 83.1 % | Qtr Profit Var | -61.9 % | EPS | 5.04 ₹ | Industry PE | 31.0 |
📊 Chart & Indicators
- Current price (₹561) is above DMA 50 (₹515) and DMA 200 (₹510), confirming short-term bullish momentum.
- RSI at 61.9 indicates strong momentum but nearing overbought territory.
- MACD at 19.6 shows bullish crossover, supporting upward bias.
- Bollinger Bands: price near upper band, suggesting strong momentum but risk of pullback.
- Volume (19.7 Lakh) below average (51.6 Lakh), showing reduced participation despite price strength.
🎯 Entry & Exit Zones
- **Entry Zone:** ₹550 – ₹565 (near support cluster).
- **Exit Zone:** ₹574 – ₹588 (recent high resistance).
- **Stop-Loss:** Below ₹540 (support breakdown risk).
📈 Trend Status
- The stock is **trending upward short-term** with bullish bias.
- Sustained breakout above ₹588 required for continuation of rally.
- Weak volume participation suggests caution.
✅ Positive
- Strong 52-week index gain of 83.1%.
- EPS at ₹5.04 supports valuation stability.
- FII holdings increased (+0.24%), showing foreign investor confidence.
- Price momentum supported by DMA breakout.
⚠️ Limitation
- Extremely high P/E (110) vs industry average (31.0), indicating severe overvaluation.
- ROCE (5.82%) and ROE (6.24%) are weak, showing poor capital efficiency.
- PEG ratio at 4.01 suggests poor valuation relative to growth.
- Dividend yield modest at 0.36%.
- Volume below average, limiting conviction.
📉 Company Negative News
- Sequential profit decline (₹190 Cr. → ₹82.7 Cr.), showing earnings weakness.
- DII holdings decreased (-0.10%), showing reduced domestic institutional support.
📈 Company Positive News
- Strong foreign institutional inflows (+0.24%).
- Stock price momentum supported by technical breakout above DMA levels.
- High 52-week performance highlights investor interest.
🏭 Industry
- Industry PE at 31.0 vs JSWENERGY’s 110, showing relative overvaluation.
- Power sector supported by renewable energy demand but facing margin pressures from high input costs.
🔎 Conclusion
JSWENERGY is trending upward with strong short-term momentum, supported by DMA breakout and RSI strength. However, fundamentals remain weak with extreme overvaluation and declining profitability. Entry is favorable only for short-term traders near ₹550–₹565 with strict stop-loss, while exits should be considered near ₹574–₹588 unless breakout above ₹588 confirms continuation. Trend remains bullish short-term but caution is advised due to weak fundamentals and low volume participation.
Would you like me to also prepare a long-term investment overlay for JSWENERGY, focusing on valuation risks and sector benchmarking against peers like NTPC and Adani Green?