Jio Financial Services witnessed a remarkable surge on Friday, with its share price soaring over 14% to achieve an unprecedented high, marking the fifth consecutive session of gains. The stock of Jio Financial leaped as much as 14.50%, reaching a pinnacle of ₹347 per share on the BSE.
Over the past three months, Jio Financial Services shares have embarked on an impressive rally, surging more than 48%. Year-to-date, the stock has recorded a substantial growth of over 40%, propelling its market capitalization to exceed ₹2 lakh crore.
Established as a demerged entity of Reliance Industries Ltd (RIL), Jio Financial Services made its debut on the stock exchanges on August 21, 2023.
Meanwhile, Reliance Industries share price also experienced a notable uptick of 0.9%, reaching a historic high of ₹2,989.40 per share on the BSE, with its market capitalization surpassing ₹20.1 lakh crore.
Jio Financial Services, a non-banking finance company (NBFC), operates its financial services arm through its consumer-centric subsidiaries, including Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL), along with a joint venture named Jio Payments Bank Limited (JPBL).
The company recently forged a partnership with BlackRock, the world’s largest asset manager, to establish an asset management company, pooling in a combined investment of $300 million.
Technical Analysis Insights
Analyzing the technical charts, the weekly time frame suggests a significant “multiple resistance” breakout within the range of ₹268–270 levels. The surge in volumes during this rally signals heightened participation among investors.
According to Rajesh Palviya, SVP – Technical and Derivatives Research at Axis Securities, the weekly Bollinger band buy signal indicates an uptick in momentum. Moreover, the stock maintains a favorable position above its 20, 50, and 100-day SMA (Simple Moving Average), with these averages trending upward in alignment with the price surge.
Palviya recommends investors to consider buying, holding, and accumulating this stock, anticipating an upside potential ranging between ₹330–365, with a downside support zone noted at ₹290–280 levels.
Financial Performance
In the quarter ended December 2023, Jio Financial Services reported a consolidated net profit of ₹293.82 crore, marking a 56% decline from ₹668.18 crore in the preceding quarter (Q2FY24). However, the company witnessed a 32% sequential slump in its consolidated revenue from operations in Q3FY24, amounting to ₹413.61 crore from ₹608.04 crore.
As of 10:55 am, Jio Finance shares traded 8.13% higher at ₹327.70 apiece on the BSE.
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