Jio Financial Services shares plummeted to Rs 310 after the U.S. Securities and Exchange Commission (SEC) charged Indian conglomerate Gautam Adani in bribery cases. Sensex and Nifty crashed after the charges leading stocks to fall to new monthly lows. The umbrella of Adani stocks fell to its lower circuit and shed a major portion of its value.
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This development pushed the price of Jio Financial shares down despite it having nothing to do with Adani stocks. However, the Mukesh Ambani-led firm managed to scale up in the charts this week despite the market turbulence. It is now trading at the Rs 326 level on Wednesday and is up close to 0.50% in the day’s trade.
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Stock Recommendation: Buy Jio Shares, Target 342, Profit 5%
Stock market analysts from Religare Brokerage have recommended a ‘buy’ call for Jio Financial Services shares this week. The new price target for Jio Financial shares is Rs 342 indicating that the stock could experience a breakout. “The stock has been in a corrective phase for the past seven months. It has now posted a fresh breakout from an inverted head and shoulders pattern. This breakout signals potential outperformance and suggests continued strength from current levels,” said Religare Broking.
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That’s an uptick and return on investment (ROI) of approximately 5% from its current price of 326. Jio Financial shares had fallen to the Rs 299 level this month but quickly rebounded in price, going above the 320 mark. The stock is caught in the crosshairs of market turbulence, which is inadvertently stunting its growth in the charts.
When the overall market recovers, the potential for Jio Financial Services shares to pump in price remains high. Taking an entry position now during its lows could prove beneficial to investors. The shares have solid long-term backing and could deliver stellar returns if held for a longer period.