JWL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | JWL | Market Cap | 11,571 Cr. | Current Price | 271 ₹ | High / Low | 457 ₹ |
| Stock P/E | 48.0 | Book Value | 65.4 ₹ | Dividend Yield | 0.37 % | ROCE | 21.5 % |
| ROE | 17.0 % | Face Value | 10.0 ₹ | DMA 50 | 289 ₹ | DMA 200 | 324 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | -0.28 % | PAT Qtr | 58.3 Cr. | PAT Prev Qtr | 52.7 Cr. |
| RSI | 44.9 | MACD | -7.95 | Volume | 1,74,19,659 | Avg Vol 1Wk | 51,27,188 |
| Low price | 237 ₹ | High price | 457 ₹ | PEG Ratio | 0.50 | Debt to equity | 0.21 |
| 52w Index | 15.4 % | Qtr Profit Var | -40.4 % | EPS | 5.67 ₹ | Industry PE | 47.9 |
📈 Chart & Trend: The stock is trading below both its 50 DMA (289 ₹) and 200 DMA (324 ₹), indicating short-term weakness and a medium-term downtrend. Current price (271 ₹) is closer to support than resistance, suggesting limited upside momentum.
📊 Momentum Indicators: RSI at 44.9 shows the stock is in neutral-to-weak territory, not oversold yet. MACD at -7.95 confirms bearish momentum. Bollinger Bands suggest consolidation with price leaning toward the lower band.
🔎 Volume Trends: Current volume (1.74 Cr) is significantly higher than the 1-week average (0.51 Cr), indicating strong participation, possibly due to selling pressure.
💡 Entry Zone: 250–260 ₹ (near support at 237 ₹, offering margin of safety)
💡 Exit Zone: 300–310 ₹ (resistance near 289–324 ₹, aligning with DMA levels)
📌 Trend Status: The stock is consolidating with bearish bias, not yet reversing.
Positive
- Strong ROCE (21.5%) and ROE (17%) indicate efficient capital use.
- PEG ratio of 0.50 suggests growth is undervalued relative to earnings.
- Low debt-to-equity (0.21) provides financial stability.
Limitation
- High P/E (48.0) compared to earnings growth, limiting valuation comfort.
- Quarterly profit variation (-40.4%) shows earnings volatility.
- Stock trading below both 50 DMA and 200 DMA indicates weak technical strength.
Company Negative News
- Recent quarterly profit decline from 98 Cr to 58.3 Cr raises concerns.
- DII holding decreased (-0.28%), showing reduced institutional confidence.
Company Positive News
- FII holding increased (+0.06%), signaling foreign investor interest.
- Sequential PAT growth (52.7 Cr → 58.3 Cr) shows short-term recovery.
Industry
- Industry P/E (47.9) aligns with company valuation, suggesting sector-wide premium pricing.
- 52-week index return of 15.4% shows moderate industry performance.
Conclusion
⚖️ The stock is consolidating with bearish undertones, trading below key moving averages. While fundamentals like ROCE, ROE, and PEG are supportive, technical signals (RSI, MACD, DMA) suggest caution. Optimal strategy: accumulate near 250–260 ₹ with strict stop-loss below 237 ₹, and book profits around 300–310 ₹.
Would you like me to also prepare a basket overlay with peer benchmarking for JWL against its sector peers? That would give you a clearer comparative edge for rotation and compounding.