Jio Financial shares jumped 9% today; can JFS stock break consolidation zone?

Shares of Jio Financial Services Ltd recorded a sharp uptick during Monday's fag-end deals. The stock surged 8.53 per cent to hit an intraday high of Rs 349.20. It eventually settled 7.12 per cent up at Rs 344.65. At this price, it has climbed 35.98 per cent in a year.

The scrip saw heavy trading volume on BSE today as around 66.09 lakh shares changed hands. The figure was higher than the two-week average volume of 19.40 lakh shares. Turnover on the counter came at Rs 222.14 crore, commanding a market capitalisation (m-cap) of Rs 2,18,965.94 crore.

Analysts largely suggested that Jio Financial's stock may see a trend reversal from its ongoing consolidation phase. Investors can consider buying it around Rs 340 levels for potential upside targets of Rs 370-400, one of them said.

"The stock looked good on charts. It has been consolidating in a strict range for the last two months. So, one can buy around Rs 340 levels for potential upside targets of Rs 370-400," market expert Kush Ghodasara told Business Today TV.

"The charts looked attractive with huge volume participation. The stock has signalled a buy with a positive trend reversal. We suggest buying it for an upside target of 368. Major support zone will be near Rs 320 level," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, also mentioned that the stock looked strong on daily charts. A decisive close above Rs 350 is required for further upside. Support will be Rs 300," Singh said.

"The stock is likely to witness a reversal from its ongoing consolidation phase. The zone of Rs 350-360 is likely to act as resistance and a decisive breakthrough could only trigger momentum," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One. On the lower end, support is placed around the Rs 320-310 zone, he added.

Support will be at Rs 320 and resistance at Rs 350, said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers. "A decisive close above Rs 350 level may trigger a further upside towards Rs 370. The expected trading range will be between Rs 300 and Rs 370 for the short term," Patel stated.

As per BSE, the stock has a price-to-equity (P/E) ratio of 662.06 against a price-to-book (P/B) value of 8.37. Earnings per share (EPS) stood at 0.49 with a return on equity (RoE) of 1.26.