Jio Financial shares soar 15% to hit all-time high; what's next on tech charts?

Shares of Jio Financial Services Ltd extended their gains for fifth consecutive session in Friday's trade. The stock surged 14.50 per cent to hit a record high of Rs 347. At this price, it has gained nearly 48 per cent on a year-to-date (YTD) basis.

The scrip today saw heavy trading volume as 98.57 lakh shares were last seen changing hands on BSE. The figure was higher than the two-week average volume of 25.48 lakh shares. Turnover on the counter came at Rs 321.74 crore along with a market capitalisation (m-cap) of Rs 2,13,216.22 crore.

Earlier this month, the financial services arm of Reliance Industries Ltd (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, an analyst said the stock looked strong on daily charts. Support on the counter could be seen around the Rs 310-305 zone.

"Jio Financial's stock may hit Rs 350 in the near term. Keep stop loss placed at Rs 310," DRS Finvest founder Ravi Singh stated.

"Support will be at Rs 306 and resistance at Rs 347. A decisive close above Rs 347 level may trigger a further upside till Rs 365. Expected trading range will be between Rs 290 and Rs 375 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"Jio Financial is bullish but also very overbought on daily charts with next resistance at Rs 360. Investors should book profits at current levels as a daily close below support of Rs 305 could lead to downward target of Rs 255 in the near term," said AR Ramachandran from Tips2trades.

As of December 2023, promoters held 47.12 per cent stake in the company.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

Also read | YES Bank shares 5 factors that may improve its profitability