JSWSTEEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | JSWSTEEL | Market Cap | 3,09,228 Cr. | Current Price | 1,264 ₹ | High / Low | 1,307 ₹ |
| Stock P/E | 42.9 | Book Value | 341 ₹ | Dividend Yield | 0.22 % | ROCE | 10.2 % |
| ROE | 8.89 % | Face Value | 1.00 ₹ | DMA 50 | 1,213 ₹ | DMA 200 | 1,149 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.10 % | PAT Qtr | 979 Cr. | PAT Prev Qtr | 1,493 Cr. |
| RSI | 59.1 | MACD | 25.4 | Volume | 15,12,691 | Avg Vol 1Wk | 21,06,340 |
| Low price | 935 ₹ | High price | 1,307 ₹ | PEG Ratio | -1.63 | Debt to equity | 0.84 |
| 52w Index | 88.6 % | Qtr Profit Var | -28.4 % | EPS | 26.5 ₹ | Industry PE | 22.9 |
📊 Chart & Indicators
- Current price (₹1,264) is above DMA 50 (₹1,213) and DMA 200 (₹1,149), confirming bullish momentum.
- RSI at 59.1 indicates healthy strength, not yet overbought.
- MACD at 25.4 shows strong bullish crossover.
- Bollinger Bands: price near upper band, suggesting strong momentum but mild risk of pullback.
- Volume (15.1 Lakh) below average (21.0 Lakh), showing reduced participation.
🎯 Entry & Exit Zones
- **Entry Zone:** ₹1,250 – ₹1,270 (near DMA 50 support).
- **Exit Zone:** ₹1,297 – ₹1,307 (recent high resistance).
- **Stop-Loss:** Below ₹1,240 (support breakdown risk).
📈 Trend Status
- The stock is **trending upward short-term** with bullish bias.
- Sustained breakout above ₹1,307 required for continuation of rally.
- Weak volume participation suggests caution.
✅ Positive
- Price trading above both DMA 50 and DMA 200.
- Strong 52-week index gain of 88.6%.
- EPS at ₹26.5 supports valuation stability.
- Technical indicators (MACD, RSI, DMA crossover) showing bullish strength.
- Domestic institutional holdings increased (+0.10%).
⚠️ Limitation
- High P/E (42.9) vs industry average (22.9), indicating overvaluation.
- ROCE (10.2%) and ROE (8.89%) remain modest.
- PEG ratio (-1.63) suggests poor earnings growth outlook.
- Dividend yield at 0.22% is low.
- Volume below average, limiting conviction.
📉 Company Negative News
- Quarterly PAT declined (₹1,493 Cr. → ₹979 Cr.), showing earnings weakness.
- Overvaluation concerns compared to industry peers.
- Weak profitability metrics despite strong price momentum.
📈 Company Positive News
- Strong long-term price performance with 52-week gain of 88.6%.
- Domestic institutional inflows provide support.
- Technical breakout above DMA levels confirms bullish bias.
🏭 Industry
- Industry PE at 22.9 vs JSWSTEEL’s 42.9, showing premium valuation.
- Steel sector supported by infrastructure demand but facing margin pressures from raw material costs.
🔎 Conclusion
JSWSTEEL is trending upward with strong short-term momentum, supported by DMA crossover, MACD, and RSI strength. Fundamentals remain weak with declining profits and overvaluation relative to peers. Entry near ₹1,250–₹1,270 is favorable for short-term traders, with exits around ₹1,297–₹1,307. Trend remains bullish short-term, but caution is advised due to stretched valuations and weakening earnings.
Would you like me to extend this into a peer benchmarking overlay comparing JSWSTEEL with Tata Steel, Jindal Steel, and SAIL to highlight relative strength and valuation?