Jio Finance: A Strong Potential Stock for Long-Term Investment

há 15 horas

Jio Finance, listed in August 2023, has been on a steady uptrend, with a notable rally in the first half of 2024. The stock has reached an all-time high of 395, but has since entered a downtrend with lower highs. Despite this, the stock has maintained strong support around 310, indicating a potential buying opportunity.

Fundamental Strength

Jio Finance has a strong fundamental backing, with Jio(Reliance) and BlackRock providing investment services. The company has launched its JioFinance App, which integrates digital banking and provides various financial services, including UPI transactions, bill payments, insurance advisory, and more in Oct 2024. The app's future plans focus on investing in AI/ML and collaborating with FinTech startups, making it a promising candidate for long-term investment.

Technical Analysis

The weekly chart shows a downtrend, with the stock currently trading below its all-time high. However, the stock has maintained strong support around 310, which could be a good entry point for long-term investors. If the stock breaks below 295, it could potentially fall to 270, making it essential to have a strategy in place.

Action Plan

For investors looking to enter in this stock:

• Wait for a breakout above the downtrend line on the daily chart before entering the market.
  
• Consider adding more quantity at the 310 support level if its taking support at this levels in daily chart.
  
• Set a stop loss at 295 to limit potential losses, with a view to enter again if 270 support holds strong
  
• Once stock crosses levels of 370 and 395 shifting stop loss higher to just below immediate support on weekly chart should be good.
  

By following this action plan, investors can potentially capitalise on the long-term potential of Jio Finance while managing risk.