JSWSTEEL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📈 JSWSTEEL is in a strong uptrend with bullish momentum indicators, though nearing overbought levels and key resistance.

📊 Technical Analysis

• Trend: The stock is trending upward and approaching its 52-week high of ₹1,224.
• Moving Averages: Price is above both 50 DMA (₹1,131) and 200 DMA (₹1,047), confirming bullish momentum.
• RSI (66.8): Near overbought zone, indicating strong momentum but potential for short-term consolidation.
• MACD (19.0): Positive and rising, confirming bullish crossover and upward momentum.
• Bollinger Bands: Price is near the upper band, suggesting strength but also caution due to volatility.
• Volume: Current volume (13.55L) is lower than 1-week average (25.74L), indicating reduced participation at higher levels.

Sources: Investing.com

Investing.com India

, Moneycontrol

MoneyControl

, TopStockResearch

TSR

🎯 Entry & Exit Zones

• Support Zone: ₹1,130 – ₹1,150 (50 DMA and recent breakout level)
• Resistance Zone: ₹1,220 – ₹1,240 (52-week high and psychological barrier)
• Optimal Entry: ₹1,140 – ₹1,160 (on pullback with RSI easing below 60)
• Exit Target: ₹1,230 – ₹1,250 (if momentum sustains and volume picks up)

✅ Positive

• Price has surged 90.8% over the past year, showing strong investor interest.
• EPS of ₹28.6 and consistent profitability support long-term valuation.
• FII holding increased by 0.14%, indicating foreign investor confidence.

⚠️ Limitation

• RSI nearing overbought zone may lead to short-term correction.
• Volume is declining despite price rise, suggesting weakening momentum.
• High P/E (38.4) and negative PEG (-1.46) suggest overvaluation relative to growth.

📉 Company Negative News

• Quarterly PAT declined from ₹2,178 Cr. to ₹1,493 Cr., indicating earnings pressure.
• DII holding decreased by 0.06%, reflecting cautious domestic sentiment.

📈 Company Positive News

• Strong technical breakout above key moving averages.
• MACD and RSI confirm bullish momentum, supported by institutional buying.

🏭 Industry

• Industry P/E is 22.3, significantly lower than JSWSTEEL’s, suggesting sector-wide caution or JSWSTEEL’s premium valuation.
• Steel sector is cyclical and influenced by global commodity prices and infrastructure demand.

🧾 Conclusion

• JSWSTEEL is currently trending with strong technical indicators and bullish sentiment.
• Short-term traders should be cautious near ₹1,224 due to overbought RSI and low volume.
• Long-term investors may consider accumulating on dips near ₹1,150 with a target of ₹1,250, maintaining stop-loss below ₹1,130.