Jindal Saw Ltd Falls 5.48%: 4 Key Factors Driving the Weekly Decline

5 January: Upgrade to Sell on Technical Improvement

Jindal Saw Ltd opened the week on a positive note, gaining 1.11% to close at ₹172.55, outperforming the Sensex which declined 0.18%. This followed MarketsMOJO’s upgrade of the stock’s rating from Strong Sell to Sell on 2 January 2026, reflecting a modest improvement in technical indicators despite persistent financial challenges. The weekly MACD turned mildly bullish, and the On-Balance Volume (OBV) showed mild bullishness, signalling a potential easing of downward momentum. However, monthly MACD and other oscillators remained bearish or neutral, indicating that the stock was still in a cautious phase. The upgrade was driven by stabilising technical trends rather than fundamental improvements, as the company continued to face declining sales and profits.

6-7 January: Mixed Technical Signals Amid Modest Declines

On 6 January, the stock slipped 0.58% to ₹171.55, with the Sensex also falling 0.19%. The following day, Jindal Saw declined further by 0.64% to ₹170.45, while the Sensex edged up 0.03%. These movements reflected mixed technical signals, with daily moving averages remaining mildly bearish and Bollinger Bands indicating subdued but skewed downside volatility. The Relative Strength Index (RSI) hovered in neutral territory, suggesting indecision among investors. Volume declined compared to the start of the week, and the technical trend remained mildly bearish overall. Despite short-term gains earlier in the week, the stock struggled to sustain upward momentum amid ongoing financial uncertainties.

8 January: Downgrade to Strong Sell Amid Weak Financials

The stock suffered a sharp 4.02% decline to ₹163.60 on 8 January, significantly underperforming the Sensex’s 1.41% drop. This followed MarketsMOJO’s downgrade from Sell to Strong Sell, prompted by deteriorating financial performance and bearish technical indicators. The company reported a 15.22% fall in net sales in Q2 FY25-26 and a 64.7% plunge in profit after tax, signalling severe margin pressures. Operating profit to interest coverage ratio contracted to 2.95 times, and the dividend payout ratio fell to a historic low of 6.82%. Technical indicators worsened, with daily moving averages turning bearish and Bollinger Bands confirming downside volatility. The monthly MACD remained bearish, and the Know Sure Thing (KST) oscillator reinforced weakening momentum. These factors combined to heighten investor caution and accelerate selling pressure.

9 January: Intensified Downtrend with Mixed Technical Signals

On the final trading day of the week, Jindal Saw declined a further 1.41% to ₹161.30, closing near its 52-week low of ₹153.20. The Sensex also fell 0.89%. Technical momentum deteriorated from mildly bearish to outright bearish, with the stock trading below key daily moving averages and hugging the lower Bollinger Bands on weekly and monthly charts. While weekly MACD and OBV showed mild bullishness, monthly indicators remained bearish, reflecting a complex but predominantly negative outlook. Dow Theory readings were mixed, mildly bullish weekly but bearish monthly, underscoring short-term support amid longer-term caution. The stock’s Mojo Score dropped to 29.0, confirming the Strong Sell rating. This intensified downtrend highlights the challenges facing Jindal Saw amid weak fundamentals and volatile market conditions.

Key Takeaways

Technical Trends: The week began with a mild technical improvement, reflected in an upgrade to Sell rating and a 1.11% gain on 5 January. However, technical momentum quickly deteriorated, with daily moving averages turning bearish and Bollinger Bands indicating downside volatility. Weekly MACD and OBV showed some short-term bullishness, but monthly indicators remained bearish throughout, signalling persistent downward pressure.

Financial Performance: Weak quarterly results, including a 15.22% decline in net sales and a 64.7% drop in PAT, weighed heavily on sentiment. The operating profit to interest coverage ratio contracted to 2.95 times, and dividend payout ratio fell to 6.82%, highlighting financial strain and cautious capital allocation.

Price Action: The stock underperformed the Sensex, falling 5.48% versus the benchmark’s 2.62% decline. The closing price of ₹161.30 on 9 January was near the 52-week low of ₹153.20, underscoring significant downside risk.

Rating Changes: The initial upgrade to Sell was short-lived, with a downgrade to Strong Sell on 8 January reflecting worsening fundamentals and technicals. The Mojo Score dropped to 29.0, signalling elevated risk.

Conclusion

Jindal Saw Ltd’s week was characterised by a sharp reversal from tentative technical improvement to intensified downtrend amid deteriorating financial results. Despite an early upgrade to Sell, the stock succumbed to mounting selling pressure as weak quarterly earnings and bearish technical indicators dominated investor sentiment. The downgrade to Strong Sell and proximity to 52-week lows highlight the challenges facing the company in the near term. While some weekly technical signals suggest potential short-term relief, the prevailing negative momentum and fundamental headwinds warrant caution. Investors should monitor upcoming financial disclosures and technical developments closely before considering exposure to this stock.

Unlock special upgrade rates for a limited period. Start Saving Now →