Technical Trend Shift and Moving Averages
After a prolonged period of sideways movement, Jio Financial Services Ltd’s technical trend has transitioned to mildly bullish on the daily chart. This shift is primarily driven by the behaviour of moving averages, which have started to slope upwards, signalling a potential positive momentum in the near term. The stock closed at ₹295.60 on 2 Jan 2026, marginally up 0.22% from the previous close of ₹294.95, with intraday highs touching ₹296.75 and lows at ₹294.15.
The daily moving averages, often regarded as a reliable short-term momentum gauge, have improved, suggesting that buying interest is gradually returning. However, this mild bullishness is tempered by the weekly and monthly moving averages, which have yet to confirm a strong uptrend, indicating that the stock remains in a consolidation phase on longer timeframes.
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On the weekly chart, the MACD remains mildly bearish, reflecting some underlying selling pressure or lack of strong upward momentum. Conversely, the monthly MACD does not currently provide a definitive signal, indicating that the longer-term momentum remains uncertain.
This divergence between weekly and monthly MACD readings suggests that while short-term momentum is attempting to improve, the broader trend has yet to decisively turn positive. Investors should therefore exercise caution and monitor for confirmation signals before committing to a bullish stance.
RSI and Bollinger Bands Analysis
The Relative Strength Index (RSI) on both weekly and monthly charts remains neutral, offering no clear overbought or oversold signals. This lack of directional bias in RSI aligns with the sideways movement observed in Bollinger Bands, which remain constricted on weekly and monthly timeframes. Such constriction typically precedes a volatility expansion, signalling that a significant price move could be imminent, though the direction remains uncertain.
On the daily scale, the absence of RSI extremes suggests that the stock is neither overextended nor deeply undervalued, supporting the view of a mild bullish momentum rather than a strong breakout.
Other Technical Indicators: KST, Dow Theory, and OBV
The Know Sure Thing (KST) indicator on the weekly chart remains bearish, reinforcing the notion of subdued momentum in the medium term. Meanwhile, the Dow Theory on the weekly timeframe has shifted to mildly bullish, indicating tentative confirmation of an upward trend, though the monthly Dow Theory shows no clear trend.
On the volume front, the On-Balance Volume (OBV) indicator is mildly bearish weekly, suggesting that volume trends have not yet supported a robust price rally. The monthly OBV remains neutral, further highlighting the lack of conviction among market participants.
Under the radar no more! This Large Cap from Cement is emerging from turnaround with solid fundamentals intact. Discover it while it's still relatively hidden!
- - Hidden turnaround gem
- - Solid fundamentals confirmed
- - Large Cap opportunity
Comparative Performance and Market Context
Jio Financial Services Ltd’s recent price action must be viewed in the context of its relative performance against the broader market. Over the past week, the stock has declined by 1.09%, underperforming the Sensex’s modest fall of 0.26%. The one-month return also shows a sharper decline of 2.97% compared to the Sensex’s 0.53% drop.
Year-to-date, however, Jio Financial has eked out a slight gain of 0.22%, marginally outperforming the Sensex’s 0.04% loss. Over the past year, the stock has lagged the benchmark significantly, with a negative return of 2.92% against the Sensex’s robust 8.51% gain. This underperformance highlights the challenges faced by the company and the NBFC sector amid broader market volatility and sector-specific headwinds.
Longer-term data is not available for the stock, but the Sensex’s strong multi-year returns—40.02% over three years and 77.96% over five years—underscore the importance of monitoring Jio Financial’s technical and fundamental developments closely to gauge its potential to catch up with market gains.
Mojo Score and Rating Upgrade
MarketsMOJO’s proprietary Mojo Score for Jio Financial Services Ltd currently stands at 64.0, reflecting a Hold rating. This represents an upgrade from the previous Sell rating as of 15 Dec 2025, signalling a cautious improvement in the company’s outlook. The Market Cap Grade remains at 1, indicating a relatively modest market capitalisation compared to peers.
The upgrade to Hold suggests that while the stock is not yet a compelling buy, it has stabilised sufficiently to warrant investor attention. The mildly bullish technical trend and improved moving averages support this view, though the mixed signals from momentum indicators counsel prudence.
Is Jio Financial Services Ltd your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Outlook and Investor Considerations
Jio Financial Services Ltd’s technical landscape suggests a tentative shift towards a more positive momentum, but the overall picture remains mixed. The mildly bullish daily moving averages and the upgrade to a Hold rating provide some encouragement for investors seeking exposure to the NBFC sector.
However, the persistent bearishness in weekly MACD and KST indicators, alongside neutral RSI and sideways Bollinger Bands, indicate that the stock has not yet established a strong upward trend. Volume trends, as reflected by the OBV, do not currently support a decisive rally, which may limit near-term upside potential.
Investors should monitor key technical levels, including the 52-week high of ₹338.45 and the 52-week low of ₹198.60, to assess breakout or breakdown scenarios. A sustained move above the 50-day and 200-day moving averages with confirming volume could signal a more robust bullish phase.
Given the stock’s recent underperformance relative to the Sensex and the broader NBFC sector’s challenges, a cautious approach is advisable. Diversification and consideration of alternative investment opportunities within the sector or across market caps may enhance portfolio resilience.
Summary
In summary, Jio Financial Services Ltd is exhibiting early signs of a mild bullish momentum shift after a period of sideways consolidation. The upgrade from Sell to Hold by MarketsMOJO reflects this cautious optimism. Yet, mixed technical signals from MACD, KST, RSI, and OBV indicators suggest that investors should await clearer confirmation before increasing exposure. The stock’s relative underperformance against the Sensex over recent periods further emphasises the need for careful analysis and risk management.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today
