JSWSTEEL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.3

📊 Chart Patterns & Trend: JSWSTEEL is trading below its 50 DMA (1,134 ₹) but slightly above its 200 DMA (1,074 ₹), showing mixed signals. The price has corrected from its 52-week high (1,224 ₹) and is consolidating near support zones.

📈 Moving Averages: Current price (1,080 ₹) is under the 50 DMA but marginally above the 200 DMA, indicating short-term weakness but long-term support.

📉 RSI: At 36.5, RSI is near oversold territory, suggesting potential for a short-term rebound.

📉 MACD: Negative at -18.8, confirming bearish sentiment and lack of strong upward momentum.

📊 Bollinger Bands: Price is near the lower band, reflecting oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (13,72,660) is below average weekly volume (15,94,996), showing reduced participation and cautious sentiment.

🎯 Momentum Signals: Weak short-term signals with bearish bias. Oversold RSI and Bollinger positioning hint at a possible rebound if buying interest emerges.

💹 Entry Zone: 1,020–1,050 ₹ (near 200 DMA support).

💹 Exit Zone: 1,150–1,180 ₹ (resistance near 50 DMA and trendline).

📌 Overall Trend: The stock is in a consolidation phase with bearish undertones, awaiting stronger volume for reversal.

Positive

• EPS of 28.6 ₹ indicates solid earnings base.
• FII holdings increased by 0.14%, showing foreign investor confidence.
• Debt-to-equity ratio of 0.84 is manageable for a capital-intensive sector.

Limitation

• High P/E of 34.8 compared to industry average (20.9).
• ROCE (10.2%) and ROE (8.89%) are modest, reflecting limited efficiency.
• PEG ratio of -1.32 highlights weak earnings growth relative to valuation.

Company Negative News

• Quarterly PAT declined to 1,493 Cr. from 2,178 Cr., showing earnings pressure.
• DII holdings decreased by 0.06%, reflecting reduced domestic institutional confidence.

Company Positive News

• FII holdings increased, showing foreign investor interest.
• Stock trading near long-term support levels, offering potential rebound opportunities.

Industry

• Industry PE at 20.9 is lower than JSWSTEEL’s valuation, suggesting peers are more attractively priced.
• Steel sector benefits from infrastructure growth and industrial demand but remains cyclical.

Conclusion

⚖️ JSWSTEEL is consolidating near support levels with bearish signals but oversold indicators suggest potential rebound. Entry around 1,020–1,050 ₹ offers favorable risk-reward, while exits near 1,150–1,180 ₹ are optimal. Long-term investors should be cautious due to high valuations and earnings pressure, while short-term traders may find opportunities in technical rebounds.