JSWHL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📊 Chart Patterns & Trend: JSWHL is trading above both its 50 DMA (19,177 ₹) and 200 DMA (18,542 ₹), showing medium-term strength despite being far below its 52-week high (27,760 ₹). The price action suggests consolidation after a steep correction.

📈 Moving Averages: Current price (20,230 ₹) is comfortably above both short-term and long-term averages, indicating stability and potential for continuation if volumes improve.

📉 RSI: At 51.4, RSI is neutral, suggesting balanced momentum without overbought or oversold signals.

📈 MACD: Strongly positive at 755, confirming bullish crossover and upward momentum.

📊 Bollinger Bands: Price is near the mid-band, reflecting consolidation. A breakout above 21,000 ₹ could trigger fresh momentum.

📊 Volume Trends: Current volume (4,976) is slightly below average weekly volume (5,154), showing limited participation and lack of strong conviction from traders.

🎯 Momentum Signals: Neutral RSI with positive MACD suggests potential for upward continuation, but low volume limits strength.

💹 Entry Zone: 19,000–19,500 ₹ (near DMA support).

💹 Exit Zone: 21,500–22,000 ₹ (resistance zone before next breakout).

📌 Overall Trend: The stock is in a consolidation phase with bullish bias, awaiting stronger volume for breakout.

Positive

• EPS of 106 ₹ indicates strong earnings base.
• Debt-to-equity ratio of 0.00 shows a debt-free balance sheet.
• Quarterly PAT improved to 59.6 Cr. from 19.7 Cr., showing operational recovery.
• FII holdings increased slightly (+0.03%).

Limitation

• Extremely high P/E of 191 compared to industry average (30.2).
• ROCE (0.85%) and ROE (0.64%) are very weak, reflecting poor efficiency.
• Dividend yield is 0.00%, limiting income appeal.
• PEG ratio of 21.0 highlights stretched valuation relative to growth.

Company Negative News

• Quarterly profit variation declined (-49.6%), showing earnings volatility.
• DII holdings decreased by 0.05%, reflecting reduced domestic institutional confidence.

Company Positive News

• Quarterly PAT recovery from 19.7 Cr. to 59.6 Cr. indicates improvement.
• FII holdings increased slightly, showing foreign investor interest.

Industry

• Industry PE at 30.2 is far lower than JSWHL’s valuation, suggesting sector peers are more attractively priced.
• Holding company structure often leads to valuation premium but also volatility.

Conclusion

⚖️ JSWHL is consolidating above key moving averages with bullish MACD signals but weak fundamentals. Entry around 19,000–19,500 ₹ offers favorable risk-reward, while exits near 21,500–22,000 ₹ are optimal. Long-term investors should be cautious due to high valuations and poor efficiency metrics, while short-term traders may benefit from momentum-driven moves.