Jindal Steel Ltd. Technical Momentum Shifts to Bullish Amid Strong Price Gains

Technical Momentum and Price Action

On 4 February 2026, Jindal Steel Ltd. closed at ₹1,148.40, marking a 2.13% increase from the previous close of ₹1,124.45. The stock touched a high of ₹1,170.65 during the day, matching its 52-week high, while the low was ₹1,134.75. This price movement reflects a strong upward momentum, with the stock nearing its annual peak, suggesting sustained buying interest.

The stock’s 52-week range spans from ₹751.45 to ₹1,170.65, indicating significant appreciation over the past year. The current price level near the upper band of this range reinforces the bullish sentiment among traders and investors.

MACD and Moving Averages Confirm Bullish Trend

The Moving Average Convergence Divergence (MACD) indicator presents a bullish signal on both weekly and monthly charts, confirming the positive momentum. The MACD line remains above the signal line, indicating that upward price momentum is likely to continue. This is a critical confirmation for traders relying on momentum-based strategies.

Complementing the MACD, the daily moving averages have also turned bullish. The stock price is trading above its key moving averages, including the 50-day and 200-day averages, which often act as dynamic support levels. This alignment of moving averages suggests a strong upward trend and reduces the likelihood of a near-term reversal.

RSI and Bollinger Bands Provide Additional Context

The Relative Strength Index (RSI) on weekly and monthly timeframes currently shows no definitive signal, hovering in a neutral zone. This suggests that while the stock is not yet overbought, there remains room for further upside before hitting potential resistance from overextension.

Bollinger Bands on both weekly and monthly charts are signalling bullishness, with the price trending near the upper band. This indicates strong volatility and momentum, often associated with continuation of the current trend rather than an imminent pullback.

Contrasting Indicators and Volume Analysis

While the KST (Know Sure Thing) indicator remains mildly bearish on weekly and monthly charts, this divergence may reflect short-term consolidation within a longer-term bullish framework. Similarly, the On-Balance Volume (OBV) shows no clear trend, suggesting that volume has not yet decisively confirmed the price move. Investors should monitor volume closely for confirmation of sustained buying interest.

Broader Market Comparison and Returns

Jindal Steel’s performance has outpaced the Sensex significantly across multiple time horizons. Over the past week, the stock returned 6.23% compared to the Sensex’s 2.30%. Over one month, the stock gained 6.33% while the Sensex declined by 2.36%. Year-to-date returns stand at 8.99% for Jindal Steel versus a negative 1.74% for the benchmark index.

Longer-term returns are even more impressive, with a 42.34% gain over one year compared to the Sensex’s 8.49%, and a staggering 302.38% return over five years against the Sensex’s 66.63%. Over a decade, Jindal Steel has delivered an extraordinary 1,971.06% return, dwarfing the Sensex’s 245.70% gain. These figures underscore the company’s strong fundamentals and market positioning within the ferrous metals sector.

Mojo Score Upgrade and Market Cap Assessment

Reflecting the improved technical outlook and price momentum, MarketsMOJO upgraded Jindal Steel’s Mojo Grade from Sell to Hold on 11 November 2025. The current Mojo Score stands at 58.0, indicating a moderate buy sentiment with room for further appreciation. The Market Cap Grade remains at 1, signalling the company’s large-cap status but also suggesting limited upside from a pure market capitalisation perspective.

This upgrade aligns with the technical trend shift from mildly bullish to bullish, reinforcing the stock’s improved risk-reward profile for investors seeking exposure to the ferrous metals sector.

Dow Theory and Trend Confirmation

Dow Theory assessments on weekly and monthly charts are bullish, supporting the broader technical narrative. This theory, which focuses on the confirmation of trends through market averages, suggests that Jindal Steel is in a confirmed uptrend, further validating the positive signals from MACD and moving averages.

Investor Considerations and Outlook

While the technical indicators predominantly favour a bullish outlook, investors should remain cautious of the mildly bearish KST readings and the neutral OBV, which may indicate short-term consolidation or a pause in momentum. The RSI’s neutral stance also suggests that the stock is not yet overbought, allowing for potential further gains without immediate risk of a sharp correction.

Given the stock’s strong relative performance against the Sensex and its proximity to 52-week highs, investors may consider Jindal Steel as a core holding within the ferrous metals sector, particularly for those with a medium to long-term investment horizon.

Summary and Final Assessment

Jindal Steel Ltd. is currently exhibiting a robust technical profile, supported by bullish MACD signals, positive moving averages, and confirmation from Dow Theory. The stock’s price momentum has strengthened, reflected in its recent gains and proximity to 52-week highs. Despite some mixed signals from KST and OBV, the overall trend remains positive.

Its superior returns relative to the Sensex across all measured periods, from one week to ten years, highlight the company’s strong market position and growth trajectory. The recent upgrade in Mojo Grade to Hold further endorses the stock’s improved outlook.

Investors should monitor volume trends and short-term momentum indicators for signs of consolidation but can consider Jindal Steel a compelling candidate for inclusion in portfolios targeting the ferrous metals sector with a bullish technical backdrop.

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