Jio Financial shares jump 8% to hit all-time high; see what technical charts indicate

Shares of Jio Financial Services Ltd rose sharply in Monday's trade to scale their record high levels. The stock jumped 7.80 per cent to hit an all-time high of Rs 359.90. It eventually settled 6.56 per cent higher at Rs 355.75. At this price, the scrip has gained 73.83 per cent from its one-year low value of Rs 204.65, a level seen on October 23 last year.

Today's upward move in the share price came after it was reported that Jio Payments may enter the soundbox segment, a feature similar to the Paytm Soundbox commonly used in retail outlets.

In a separate development, Jio Financial said, "Reliance Industrial Investments and Holdings Ltd (RIIHL), a wholly-owned subsidiary of Jio Financial, has informed that it has sold its 100 per cent equity stake in Jio Infrastructure Management Services Ltd (JIMSL) to Reliance Strategic Business Ventures Ltd (RSBVL) for an aggregate cash consideration of Rs 0.92 crore."

RSBVL, a wholly-owned subsidiary of Reliance Industries Ltd (RIL), is engaged in the business of trading of goods and holding strategic interests in businesses and providing business support services. JIMSL, a wholly-owned subsidiary of RIIHL, is in the business of project management services. JIMSL had a turnover of Rs 4 crore during FY 2022-23 and net worth of Rs 1.23 crore as on March 31, 2023, contributing 9.60 per cent and 0.001 per cent of the consolidated turnover and net worth of the company respectively for FY23.

Accordingly, JIMSL ceased to be a step down subsidiary of the company, it stated. "The transaction is a related party transaction and is on an arm's length basis. The promoter and promoter group are not interested in the above transaction," Jio Financial added.

Earlier this month, the financial services arm of RIL clarified that it has not been in any negotiations to acquire Paytm wallet.

"With reference to the captioned subject ("Mukesh Ambani to acquire Paytm wallet? Jio Financial shares soar after report"), we clarify that the news item is speculative and we have not been in any negotiations in this regard," it stated in an exchange filing.

On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 59.57. A level below 30 is defined as oversold while a value above 70 is considered overbought.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 338 and resistance at Rs 351. A decisive close above Rs 351 level may trigger a further upside till Rs 360. Expected trading range will be between Rs 325 and Rs 365 for a month."

DRS Finvest founder Ravi Singh said, "The stock looked strong on daily charts and it may see Rs 380 level in the near term. Keep stop loss placed at Rs 325."

AR Ramachandran from Tips2trades said, "Jio Financial looks bullish but very overbought on daily charts with next resistance at Rs 370. Investors should book profits at current levels as a daily close below support of Rs 345 could lead to a downward target of Rs 305 in the near term."

On BSE, around 66.78 lakh shares changed hands today. The figure was higher than the two-week average volume of 51.86 lakh shares. Turnover on the counter came at Rs 233.75 crore, commanding a market capitalisation (m-cap) of Rs 2,26,018.08 crore.