Jio Financial Services shares (JIOFIN) snapped out of its seven-day decline and entered the greener spectrum on Wednesday. Its price is hovering around the Rs 225 mark in the day’s trade after a high of 227. JIOFIN has dipped nearly 25% year-to-date as Sensex bled nearly 10,000 points in the last six months. The market does not support a bullish thesis making leading stock to head south in the indices.
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Will Jio Financial Shares (JIOFIN) Reach The Rs 250 Mark Next?
Jay Thakkar from ICICI Securities has cautioned investors to rethink taking an entry position in the stock market. The relentless downturn could make investor’s portfolios remain in the red. The analyst urged traders to wait and watch for the market’s next moves before taking an entry position in Jio Financial shares.
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Thakkar explained that Jio Financial shares experienced lots of margin trading positions that made its price surge on Wednesday. However, he cautioned that the stock is yet to bottom out and could slide in the charts when MTS reverses. “There is a short build-up in this stock and lots of MTS (Margin Trading System) positions as well. One should wait and watch until we see a meaningful bottoming play,” he said to Business Today.
Jio Financial Shares is now at its September 2023 lows and another leg-down could push its price below its launch price of Rs 214. JIOFIN is currently up just 5% from its launch price of Rs 214, which it started in August 2023. Nonetheless, if the stock dips below the Rs 200 mark, taking an entry position could prove beneficial.
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When Sensex and Nifty recover from the bearish grips, Jio Financial shares could be among the first ones to rally. Buying at its lowest price point will make investors reap the rewards of the bull run.