Jio Financial shares surge 14% in a month: Can the momentum last?

Shares of Jio Financial Services Ltd (JFSL) on Wednesday settled 0.89 per cent lower at Rs 326.70. Despite this drop, the stock has gained 14.01 per cent in the past one month. JFSL recently notified the stock exchanges that its joint ventures with BlackRock — Jio BlackRock Investment Advisers Pvt Ltd, Jio BlackRock Asset Management Pvt Ltd and Jio BlackRock Broking — have received regulatory approval from Sebi to operate as an investment adviser, manage mutual fund operations and act as a stock broker, respectively.

Commenting on the development, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "Jio Financial has witnessed a decent uptick lately, driven by its foray into the mutual fund and stock broking segments. Existing investors are advised to stay invested in the stock."

From a technical perspective, the Rs 305–325 range is likely to serve as a near-term support zone for JFSL. Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, observed that the stock's technical setup remains bullish, with support seen around Rs 310–305. "In the near term, the Rs 340–345 zone is expected to act as an intermediate resistance," he added.

According to Sebi-registered independent analyst AR Ramachandran, "Jio Financial is bearish and overbought on daily charts with strong resistance at Rs 332. A daily close below the support of Rs 325 could lead to a downside target of Rs 283 in the near term."

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, observed that support on the counter will be at Rs 320 and resistance at Rs 331. "A decisive move above Rs 331 level may trigger a further upside towards Rs 340. The expected trading range will be between Rs 315 and Rs 340 for the short term," Patel also said.

Technically, the scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 74.26. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-earnings (P/E) ratio of 395.50 against a price-to-book (P/B) value of 8.44. Earnings per share (EPS) stood at 0.83 with a return on equity (RoE) of 2.13. According to Trendlyne data, Jio Financial has a one-year beta of 1.51, indicating high volatility.

Promoters held a 47.12 per cent stake in the Reliance Industries Ltd (RIL)-backed entity as of March 2025.