Jindal Drilling & Industries Ltd Faces Bearish Momentum Amid Mixed Technical Signals

Current Price and Market Context

As of 22 Jan 2026, Jindal Drilling & Industries Ltd is trading at ₹506.65, marginally down by 0.06% from the previous close of ₹506.95. The stock’s 52-week range remains wide, with a high of ₹990.50 and a low of ₹490.05, indicating significant volatility over the past year. Today’s intraday range between ₹497.25 and ₹519.55 further underscores this price fluctuation.

Technical Trend Shift and Moving Averages

The technical trend for Jindal Drilling has shifted from mildly bearish to outright bearish, reflecting increased selling pressure. Daily moving averages confirm this bearish stance, with the stock price currently below key averages, signalling downward momentum. This suggests that short-term traders may remain cautious, as the stock struggles to regain upward traction.

MACD and Momentum Oscillators

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced view. On a weekly basis, the MACD remains mildly bullish, hinting at some underlying positive momentum in the near term. However, the monthly MACD is mildly bearish, indicating that longer-term momentum is weakening. This divergence between weekly and monthly MACD readings suggests that while short-term rallies may occur, the broader trend remains under pressure.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI) on both weekly and monthly charts currently offers no clear signal, hovering in neutral territory. This lack of directional RSI momentum implies that the stock is neither overbought nor oversold, leaving room for either a rebound or further decline depending on market catalysts.

Bollinger Bands, however, are bearish on both weekly and monthly timeframes. The stock price is trading near the lower band, which often indicates increased volatility and potential downside risk. This technical setup suggests that the stock could face continued pressure unless it manages to break above the middle band, signalling a possible trend reversal.

KST and Dow Theory Signals

The Know Sure Thing (KST) indicator also reflects mixed signals. Weekly KST is mildly bullish, suggesting some short-term positive momentum, but the monthly KST remains mildly bearish, reinforcing the longer-term cautionary stance. Dow Theory analysis aligns with this, showing a mildly bearish weekly trend and no clear trend on the monthly scale. This combination points to a market in flux, with no definitive directional conviction.

On-Balance Volume and Market Sentiment

On-Balance Volume (OBV) readings are mildly bearish on the weekly chart, indicating that volume trends are not supporting a strong price rally. The monthly OBV shows no clear trend, which may reflect indecision among investors or a lack of sustained buying interest. This volume pattern is consistent with the overall cautious technical outlook.

Comparative Returns and Sector Context

Examining Jindal Drilling’s returns relative to the Sensex reveals a mixed performance. Over the past week, the stock declined by 3.63%, underperforming the Sensex’s 1.77% drop. Over one month, the stock marginally gained 0.07%, outperforming the Sensex’s 3.56% decline. Year-to-date, however, the stock has fallen 11.70%, significantly lagging the Sensex’s 3.89% loss. Over the last year, the stock’s return was deeply negative at -32.36%, contrasting with the Sensex’s positive 8.01% gain.

Longer-term returns paint a more favourable picture, with the stock delivering 76.63% over three years and an impressive 499.59% over five years, far outpacing the Sensex’s 35.12% and 65.06% respectively. Over ten years, Jindal Drilling has returned 356.44%, exceeding the Sensex’s 241.83%. This long-term outperformance highlights the company’s resilience and growth potential despite recent headwinds.

Mojo Score and Grade Update

MarketsMOJO has upgraded Jindal Drilling’s Mojo Grade from Sell to Hold as of 26 May 2025, reflecting an improved but still cautious outlook. The current Mojo Score stands at 51.0, indicating a neutral stance. The Market Cap Grade is 3, signalling a mid-tier market capitalisation within the oil sector. This upgrade suggests that while the stock is no longer a strong sell, investors should maintain a watchful eye on evolving technical and fundamental factors.

Investor Takeaway and Outlook

Jindal Drilling & Industries Ltd currently faces a challenging technical landscape. The bearish daily moving averages and Bollinger Bands, combined with mixed momentum indicators, suggest that the stock may continue to experience volatility and downward pressure in the near term. The absence of strong RSI signals and the divergence between weekly and monthly MACD and KST indicators imply that any short-term rallies could be met with resistance.

However, the company’s long-term return profile remains robust, and the recent upgrade to a Hold rating by MarketsMOJO indicates that the stock is stabilising after a period of weakness. Investors with a medium to long-term horizon may find value in monitoring the stock for signs of a sustained technical turnaround, particularly if the price can break above key moving averages and the middle Bollinger Band.

Given the oil sector’s inherent cyclicality and sensitivity to global energy markets, external factors such as crude oil prices, geopolitical developments, and sectoral demand will continue to influence Jindal Drilling’s performance. A cautious approach, combined with close attention to evolving technical signals, is advisable for investors considering exposure to this stock.

Summary

In summary, Jindal Drilling & Industries Ltd is navigating a complex technical environment characterised by bearish momentum and mixed indicator signals. While short-term trends lean negative, the stock’s long-term fundamentals and recent Mojo Grade upgrade provide a tempered optimism. Investors should weigh these factors carefully and remain vigilant for technical confirmation before committing to new positions.

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