JIO FINANCE ANALYSIS 05.10.24

GS MEMBER : Please share technical analysis for Jio Finance, is it best time to add?

Below are Risk Factors to consider :

1) News based stocks are very uncertain and volatile. Generally adding such stocks as swing or long term portfolio requires high risk appetite.

2) Business fundamentals of the company are still very unclear. As recently it was aiming for to make mark in NBFC sector but now wealth management along with other financial services like insurance sector and payment aggregator are into its business model. Honestly, at current point its very difficult to figure out which sector will JFS have its prominent focus on hence it can be fair to say its over diversified as of now.

3) With War situations escalating the oil prices have gone up, this could bring uncertainty for RBI while announcing rate cut as Oil plays important role in keeping inflation of the country under control. Rate cut benefits NBFC and Banking sector companies hence its important to keep eye on RBI announcement in case there's any rate cut in coming time or not.

Below are some opportunities to consider :

1) Improved financial valuation risk, i.e stock has corrected 15-20% from its ATH and this has bought down its PB ratio significantly around median and ideal PB for financial sector company. However its important to consider that coming quarters and commence of its business plan is very important.

Swing Analysis of JFS by Growthsquad : Jio Finance is currently trading at a decent support zone at ₹338. Investors can add this stock at current level considering this as E1 i.e Entry 1. Incase stock slips down we can start accumulating more as Entry 2 at ₹310-325

The stock momentum can shift with latest news and hence incase it starts moving upwards, a partial Target can be set at ₹370 as T1, and T2 can be set at ₹420.

These levels are baseless if you're looking to hold JFS for long term. In that case there is no Target levels and you just need to monitor the Quarterly results, Credit Reports and other business related documents closely and make your decision.

Incase ya'll like to share your technical/Fundamental analysis, feel free to drop a mail at contact@growthsquad.in, we will post it here with all due credits. Have a nice day, cheers!

Regards,

Team GROWTHSQUAD

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