Posted on March 6, 2025, by Niftynews
Jio Financial share price has gained momentum, rallying over 10% in the past three sessions. On March 6, the stock rose as much as 2.4%, reaching ₹222.35 per share on the Bombay Stock Exchange (BSE). This positive surge in price comes after a period of significant volatility for the stock, which has seen declines of 11% in one month, 27% on a year-to-date (YTD) basis, and a 34% drop in the past six months. However, the recent performance has piqued investor interest, leading many to wonder: Is Jio Financial Services a good buy right now?
What’s Driving the Recent Rally in Jio Financial Share Price?
The rally in Jio Financial shares can be attributed to the company’s announcement on March 4 regarding its acquisition plans for the remaining shares of Jio Payments Bank from the State Bank of India (SBI). As of now, Jio Financial Services holds an 82.17% stake in Jio Payments Bank, but the recent acquisition will make JPBL a wholly owned subsidiary. The acquisition, which involves 7.9 million equity shares worth ₹104.54 crore, is subject to approval from the Reserve Bank of India (RBI) and is expected to complete within 45 days following RBI’s approval.
This move is expected to streamline operations and boost the company’s control over its banking services, potentially unlocking significant growth opportunities. Such announcements typically instill confidence in investors, which could be why Jio Financial’s share price has experienced a boost in the short term.
Jio Financial Services Stock Price Trend
While Jio Financial Services stock has seen a notable uptick in the past few days, it’s important to consider its performance over a longer time frame. The stock has fallen over 11% in the past month and declined 27% YTD. Additionally, it has dropped 34% over the past six months and 32% over the last year. This suggests that despite the recent gains, the stock has struggled to maintain upward momentum in recent times.
The sharp decline in Jio Financial’s stock over the last several months could be attributed to various factors, including market conditions, investor sentiment, and the broader performance of Reliance Industries’ non-banking financial company (NBFC) subsidiary. Despite these setbacks, the recent rally has sparked speculation that the stock might be positioning itself for a turnaround.
Is Now a Good Time to Buy Jio Financial Shares?
According to Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, the recent rally in Jio Financial shares seems to be driven by short-covering following the sell-off. Dongre suggests that if the stock closes above ₹225, it could attract more buyers, with short-term targets of ₹240–245. However, he advises placing a stop-loss order around ₹210–215 to mitigate risk.
Technical analysts often focus on these price levels to determine the stock’s potential for further gains or losses. Investors who believe in the company’s long-term prospects and are willing to tolerate short-term volatility might find this a good buying opportunity, especially if the stock breaks above the ₹225 level.
What’s Next for Jio Financial Share Price?
The future of Jio Financial’s stock largely depends on the successful completion of the Jio Payments Bank acquisition and its integration into the company’s broader financial ecosystem. If the acquisition goes as planned and regulatory approvals are granted, the stock could see more buying momentum, especially as investors begin to see the long-term benefits of Jio Financial becoming a more integrated player in the financial services industry.
However, there are still risks involved. The stock’s performance over the next few weeks will largely depend on broader market trends, investor sentiment, and potential news regarding Jio Financial’s strategic plans.
Conclusion: Should You Buy Jio Financial Shares?
The recent rally in Jio Financial shares could represent a potential short-term opportunity for traders. However, given the stock’s volatility and recent downward trend, long-term investors should remain cautious. For those looking to capitalize on technical trends, keeping an eye on key resistance levels such as ₹225 could be critical.
As with any investment, it’s essential to conduct thorough research and consider both the short-term and long-term implications before making a decision. Whether or not to buy Jio Financial shares depends on your risk tolerance, investment horizon, and belief in the company’s future growth prospects.
Stay tuned to the latest market developments and consult with a financial advisor to make well-informed decisions.
