Jio Financial shares jumped 9% in two days; will this upmove continue?

Shares of Jio Financial Services Ltd continued their upward move for the second consecutive session on Tuesday. The stock today rose 1.68 per cent to settle at Rs 350.45. At this price, it has gained 8.92 per cent in two trading days.

The non-banking financial company (NBFC) has recently received approval from the Department of Economic Affairs to increase its aggregate limit of foreign investment (including FPIs) to 49 per cent of the paid-up equity share capital on a fully diluted basis.

"Some buying interest is emerging in the stock after the company received the nod to increase its foreign portfolio holdings. Investors with a long-term view can hold this stock. For fresh entry, one can opt for the buy-on-dip strategy," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

Technically, support on the counter could be seen around Rs 320 level. And, immediate resistance may be found Rs 357.

"Support will be at Rs 320. If the stock manages to hold Rs 350 level decisively then it can hit Rs 370 in the near term. The expected trading range will be between Rs 300 and Rs 370 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"Jio Financial stock price is slightly bearish on daily charts with strong resistance at Rs 357. A daily close below support of 342 could lead to 318 in the near term," said Sebi-registered research analyst AR Ramachandran.

The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 64.65. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-equity (P/E) ratio of 709.18 against a price-to-book (P/B) value of 8.96. Earnings per share (EPS) stood at 0.49 with a return on equity (RoE) of 1.26.

Jio Financial shares saw heavy trading volume on BSE today as around 36.52 lakh shares changed hands. The figure was higher than the two-week average volume of 24.86 lakh shares. Turnover on the counter came at Rs 127.18 crore, commanding a market capitalisation (m-cap) of Rs 2,22,650.84 crore.

As of June 2024, promoters held a 47.12 per cent stake in the NBFC.