Jio Financial shares slip 6%; technical analysts see 'bearish' trend in near term

Shares of Jio Financial Services Ltd fell sharply in Monday's trade. The stock slumped 5.73 per cent to hit a day low of Rs 351. At this price, the scrip has slipped 7.32 per cent from its all-time high value of Rs 378.70, a level seen recently this month on April 8.

Technical analysts largely suggested that the stock looked 'bearish' in the near term. Support could be seen around the Rs 340-335 zone.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The counter looked weak on daily charts and can test Rs 335 level in the near term. One can reinitiate 'Buy' around the said lower zone for an upside target of Rs 370."

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, Jio Financial's stock is in a secular uptrend. However, the counter is signaling an early sign of profit booking or correction. On the lower end, immediate support is placed around the Rs 340-335 zone. It is advisable to keep a pragmatic approach post the stellar run in the counter."

AR Ramachandran from Tips2trades said the stock looked bearish on daily charts with strong resistance at Rs 379. "A daily close below Rs 353 could lead it to a lower level of Rs 318 in the near term."

The stock saw heavy trading volume on BSE today. Around 63.38 lakh shares were last seen changing hands. The figure was way more than the two-week average volume of 26.13 lakh shares. Turnover on the counter was at Rs 226.01 crore, commanding a market capitalisation (m-cap) of Rs 2,25,001.56 crore.

As of December 2023, promoters held a 47.12 per cent stake in the non-banking finance company (NBFC). Jio Financial is scheduled to declared its quarterly earnings on April 19, 2024.