JSWHL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.6

📉 JSWHL is currently reversing from its highs with weak momentum indicators and low volume, suggesting bearish sentiment and limited upside in the short term.

📊 Technical Analysis

• Trend: The stock is reversing from its peak of ₹27,760 and trading below both 50 DMA (₹17,679) and 200 DMA (₹18,255), indicating a bearish trend.
• Moving Averages: Price is below key averages, confirming downward pressure.
• RSI (40.7): Near oversold territory, but not yet signaling a reversal.
• MACD (-225): Deeply negative, confirming strong bearish momentum.
• Bollinger Bands: Price is near the lower band, suggesting oversold conditions but also high volatility.
• Volume: Current volume (2,847) is low compared to 1-week average (1,918), indicating weak participation and possible illiquidity.

Sources

tick.dailybulls.in

+2

🎯 Entry & Exit Zones

• Support Zone: ₹16,500 – ₹16,800 (recent base and psychological level)
• Resistance Zone: ₹17,700 – ₹18,300 (DMA levels and prior breakdown zone)
• Optimal Entry: ₹16,800 – ₹17,000 (if RSI stabilizes and MACD flattens)
• Exit Target: ₹18,200 – ₹18,500 (short-term recovery zone)

✅ Positive

• EPS of ₹159 reflects strong earnings per share despite weak technicals.
• Debt-to-equity ratio of 0.00 indicates zero leverage and strong financial health.
• Quarterly PAT increased slightly from ₹19.1 Cr. to ₹19.7 Cr., showing earnings stability.

⚠️ Limitation

• High P/E ratio (107) and PEG (11.8) suggest significant overvaluation.
• ROCE (0.85%) and ROE (0.64%) are extremely low, indicating poor capital efficiency.
• MACD and RSI show weak momentum and potential downside risk.

📉 Company Negative News

• Price has dropped significantly from its high of ₹27,760 to ₹16,998.
• DII holding decreased by 0.05%, reflecting cautious domestic sentiment.

📈 Company Positive News

• FII holding increased by 0.03%, showing marginal foreign investor interest.
• Stable PAT and zero debt support long-term financial resilience.

🏢 Industry

• Industry P/E is 31.4, far below JSWHL’s, indicating sector-wide caution.
• Conglomerates sector is sensitive to macroeconomic trends and internal capital allocation efficiency.

🧾 Conclusion

• JSWHL is currently reversing with weak technical indicators and low investor participation.
• Short-term traders should avoid entry until MACD flattens and RSI rises above 45.
• Long-term investors may consider accumulating near ₹17,000 with a target of ₹18,500, maintaining stop-loss below ₹16,500.