Jai Corp shares hit 5% upper circuit limit; technical analysts see further upside

Shares of Jai Corp Ltd on Tuesday soared 5 per cent to hit their upper price band of Rs 369.60. At this price, the multibagger stock has gained 143.32 per cent on a year-to-date (YTD) basis and 113.33 per cent in the last six months. The scrip was just 0.66 per cent away from its one-year high price of Rs 372.05, a level seen on October 19, 2023.

Bourses BSE and NSE have put the securities of Jai Corp under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

Technical analysts largely suggested that the stock could witness a further upside in the near term. On the higher side, resistance may be found at Rs 400. Support will be at Rs 350, followed by Rs 335 level.

"Support will be at Rs 335 and resistance at Rs 400. Expected trading range will be between Rs 300 and Rs 450 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"The stock may hit Rs 400 level in the near term. Keep stop loss placed at Rs 350," said DRS Finvest founder Ravi Singh.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 72.45. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 1606.50 against a price-to-book (P/B) value of 4.64.

On BSE, 2.46 lakh shares changed hands today. The figure was way more than the two-week average volume of 1.47 lakh shares. Turnover on the counter came at Rs 9.03 crore, commanding a market capitalisation (m-cap) of Rs 6,595.49 crore.

Jai Corp was incorporated in 1985. The company is engaged in manufacturing businesses such as steel, plastic processing and spinning yarn. It is currently focusing and investing in emerging opportunities like developing SEZs, infrastructure, venture capital and real estate.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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