Price Movement and Market Context
On 2 February 2026, Jindal Steel Ltd. (stock code 338854) closed at ₹1,102.70, down 2.48% from the previous close of ₹1,130.70. The stock traded within a range of ₹1,091.80 to ₹1,144.15 during the day, remaining below its 52-week high of ₹1,170.00 but comfortably above the 52-week low of ₹723.95. This price action reflects a short-term correction within a longer-term uptrend.
Comparatively, Jindal Steel has outperformed the Sensex significantly over multiple time horizons. The stock posted a 1-week return of 3.73% against the Sensex’s -1.00%, a 1-month return of 8.00% versus -4.67% for the benchmark, and a year-to-date gain of 4.66% compared to the Sensex’s -5.28%. Over the past year, the stock surged 32.06%, dwarfing the Sensex’s 5.16% rise. Its 3-year and 5-year returns stand at 92.11% and 321.44%, respectively, far exceeding the Sensex’s 35.67% and 74.40%. The decade-long return is particularly impressive at 1,616.26%, compared to the Sensex’s 224.57%.
Technical Indicator Analysis
Jindal Steel’s technical trend has shifted from bullish to mildly bullish, signalling a moderation in upward momentum but not a reversal. The Moving Average Convergence Divergence (MACD) remains bullish on both weekly and monthly charts, indicating that the stock’s momentum is still positive over medium and longer terms. The daily moving averages also maintain a bullish stance, reinforcing the presence of underlying buying interest.
However, the Relative Strength Index (RSI) on weekly and monthly timeframes shows no clear signal, suggesting that the stock is neither overbought nor oversold. This neutral RSI reading implies that the recent price decline may be a healthy consolidation rather than a sign of weakness.
Bollinger Bands on weekly and monthly charts are mildly bullish, indicating that price volatility is contained within an upward channel, but the bands are not expanding aggressively, which would have signalled stronger momentum.
Contrasting Signals from KST and Dow Theory
The Know Sure Thing (KST) indicator, a momentum oscillator, is mildly bearish on both weekly and monthly charts. This divergence from the MACD suggests some caution, as the KST may be signalling a potential slowdown in momentum or a short-term correction. Similarly, the Dow Theory analysis shows no definitive trend on weekly and monthly scales, reflecting market indecision.
On-Balance Volume (OBV) also shows no clear trend, indicating that volume flow is not strongly confirming price movements. This lack of volume confirmation can be a warning sign that the current price action may lack conviction.
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Mojo Score and Rating Upgrade
MarketsMOJO assigns Jindal Steel a Mojo Score of 51.0, reflecting a moderate outlook. The Mojo Grade has recently improved from Sell to Hold as of 11 November 2025, signalling a cautious but more positive stance on the stock. Despite the upgrade, the Market Cap Grade remains at 1, indicating that the company is still considered a large-cap entity with stable market capitalisation.
This rating shift aligns with the technical trend moderation, suggesting that while the stock is no longer a strong sell, investors should monitor momentum indicators closely before committing to new positions.
Sector and Industry Context
Operating within the Ferrous Metals sector, Jindal Steel’s performance is influenced by global commodity cycles, steel demand, and raw material costs. The sector has seen volatility due to fluctuating iron ore prices and geopolitical factors affecting supply chains. Jindal Steel’s ability to maintain a bullish MACD and daily moving averages despite these headwinds highlights its relative resilience.
However, the mildly bearish KST and neutral RSI suggest that the stock may be experiencing a pause as the sector digests recent gains and awaits clearer catalysts.
Investor Implications and Outlook
For investors, the current technical setup of Jindal Steel suggests a mixed picture. The bullish MACD and moving averages support a continuation of the uptrend, but the mildly bearish KST and lack of volume confirmation advise caution. The stock’s recent price dip to ₹1,102.70 from ₹1,130.70 could represent a buying opportunity if momentum indicators stabilise.
Long-term investors may find comfort in the stock’s strong historical returns and relative outperformance against the Sensex. However, short-term traders should watch for confirmation from RSI and volume trends before increasing exposure.
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Summary
Jindal Steel Ltd. currently exhibits a cautiously optimistic technical profile. The shift from bullish to mildly bullish momentum, supported by strong MACD and moving averages, is tempered by neutral RSI and mildly bearish KST signals. The stock’s recent price correction fits within a broader consolidation phase, with no clear trend confirmation from Dow Theory or OBV.
Investors should weigh the stock’s impressive long-term returns and recent Mojo Grade upgrade against the mixed technical signals. Monitoring momentum indicators closely in the coming weeks will be crucial to determine whether Jindal Steel can resume its upward trajectory or if further consolidation lies ahead.
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