Jio Financial shares climb 3%; how strong is this uptrend?

Shares of Jio Financial Services Ltd were trading higher in Monday's session. The stock rose 2.93 per cent to hit a day high of Rs 364.15. At this price, it was 2.76 per cent away from its all-time high value of Rs 374.50, a level seen last month on March 12.

The NBFC has recently said it held 76.98 per cent in the paid-up equity share capital of Jio Payments Bank, a joint venture of the company and State Bank of India (SBI). And, it has subscribed to 40,00,000 equity shares of Rs 10 each of Jio Payments, for cash at par, aggregating Rs 4 crore for its business purposes. Post completion of the transaction, the company's holding in Jio Payments will increase to 77.25 per cent, it stated.

On technical charts, support on the counter could be seen at Rs 348, followed by Rs 345 and Rs 330 levels. Immediate resistance will be at Rs 375.

"The stock looked strong on charts. One can consider buying at current levels. Expected target would be Rs 475 with a timeframe of up to two months. Support will be at Rs 330," Akshay Bhagwat, Senior Vice-President, Derivatives Research at JM Financial Services, told Business Today TV.

"The counter can see Rs 380 level in the near term. Keep stop loss placed at Rs 345," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

"Jio Financial looks slightly bearish on daily charts with strong resistance at Rs 375. A daily close below support of Rs 348 could lead to a lower target of Rs 309 in the near term," said AR Ramachandran from Tips2trades.

On BSE, around 18.57 lakh shares were changing hands today at the time of writing this story. The figure was lower than the two-week average volume of 32.15 lakh shares.

Turnover on the counter came at Rs 66.92 crore, commanding a market capitalisation (m-cap) of Rs 2,28,305.27 crore. There were 8,05,839 sell orders against buy orders of 2,65,665 shares.

The counter's 14-day relative strength index (RSI) came at 60.81. A level below 30 is defined as oversold while a value above 70 is considered overbought.