Jio Financial shares climbed 16% from record low levels; is there a short build-up ahead?

Shares of Jio Financial Services Ltd settled 1.32 per cent higher at Rs 230.40. At this closing value, the stock has rebounded 16.01 per cent from its all-time low of Rs 198.60, seen on March 3 this year.

The company recently said it has been allotted 8.50 crore equity shares of Jio Payments Bank Ltd (JPBL) for Rs 85 crore. Prior to this, Jio Financial announced the acquisition of 7.9 crore shares of JPBL from the State Bank of India (SBI) for Rs 104.5 crore.

Separately, the company has been allotted around 1,74 crore equity shares of wholly-owned subsidiary Jio Finance Ltd (JFL) for cash Rs 1,000.24 crore.

Analysts largely suggested that Jio Financial has recovered from oversold levels and could see strength in the short term. A decisive breach above the Rs 235-240 range can trigger further upside of up to Rs 265 level.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The stock has made some recovery after testing the lows around Rs 200 mark. In the past few sessions, it has shown signs of consolidating within a narrow range. A decisive breakout above Rs 235-240 is likely to generate momentum in the near future. On the downside, strong support is found in the 220-215 range during this period.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be at Rs 220 and resistance at Rs 236. A decisive move above Rs 236 level may trigger a further upside towards Rs 250. The expected trading range will be between Rs 220 and Rs 250 for the short term.

Ameya Ranadive, CMT, CFTe & Senior Technical Analyst at StoxBox, said, "Jio Financial has been in an uptrend over the past two weeks, recovering from oversold levels. The stock is indicating short-term strength. A breakout above Rs 235, if sustained, could lead to further upside momentum, with potential targets in the Rs 257-265 range. The volume activity supports a positive bias, and momentum indicators suggest a buildup in buying interest. It remains a strong 'buy-on-dip' candidate, with Rs 235 being a crucial resistance for further upside traction. However, the stock remains in a broader downtrend and the view will be negated if it falls below Rs 205, which may trigger renewed selling pressure."

As of December 2024, promoters held a 47.12 per cent stake in the Reliance Industries-backed entity.