JWL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.0

📊 Chart Patterns & Trend: JWL is trading well below both its 50 DMA (294 ₹) and 200 DMA (345 ₹), reflecting strong bearish momentum. The price has corrected sharply from its 52-week high (548 ₹) and is hovering near its recent low (247 ₹), suggesting weakness with attempts to stabilize.

📈 Moving Averages: Current price (260 ₹) is significantly below both DMAs, confirming bearish undertones. A recovery above 290–300 ₹ would be needed to regain momentum.

📉 RSI: At 29.7, RSI is in oversold territory, indicating potential for a short-term rebound.

📉 MACD: Negative at -13.2, confirming bearish sentiment and lack of strong upward crossover.

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

📊 Volume Trends: Current volume (5,80,459) is below average weekly volume (9,40,543), showing reduced participation and cautious sentiment.

🎯 Momentum Signals: Weak short-term signals with bearish bias. Oversold RSI and Bollinger positioning suggest potential rebound attempts if buying interest emerges.

💹 Entry Zone: 250–260 ₹ (near strong support levels).

💹 Exit Zone: 290–310 ₹ (resistance near 50 DMA).

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

Positive

• EPS of 6.61 ₹ with strong ROCE of 21.5% and ROE of 17.0%.
• PEG ratio of 0.41 suggests reasonable valuation relative to growth.
• Debt-to-equity ratio of 0.21 indicates healthy leverage levels.
• Quarterly PAT improved to 52.7 Cr. from 32.9 Cr., showing operational recovery.

Limitation

• Price trading below both 50 DMA and 200 DMA signals weak momentum.
• Quarterly profit variation at -40.5% highlights earnings volatility.
• Dividend yield of 0.39% is modest for income-focused investors.
• Volume below average, limiting breakout potential.

Company Negative News

• FII holdings decreased by 0.03% and DII holdings by 0.36%, showing reduced institutional confidence.
• Stock trading near 52-week low, reflecting weak sentiment.

Company Positive News

• Quarterly PAT improved sequentially, showing operational resilience.
• Strong ROCE and ROE highlight efficiency despite recent weakness.

Industry

• Industry PE at 45.6 is higher than JWL’s P/E of 39.3, suggesting relative undervaluation.
• Sector benefits from cyclical demand but faces volatility in margins and investor sentiment.

Conclusion

⚖️ JWL is consolidating near support levels with weak momentum but oversold indicators suggest potential rebound. Entry around 250–260 ₹ offers favorable risk-reward, while exits near 290–310 ₹ are optimal. Long-term investors should be cautious due to earnings volatility, while short-term traders may find opportunities in technical rebounds.