Just Dial Weak Below ₹850, Reliance Integration Key Trigger
Just Dial shares have been under pressure in recent times, with the stock slipping 6% in the past month. As of now, the stock is trading near ₹820, with weak technicals indicating a bearish trend. However, SEBI analyst Deepak Pal sees support at ₹800 and resistance at ₹850-870, hinting at a possible bounce-back. But will the stock be able to break through the resistance level, or will it continue to slide? In this blog post, we’ll take a closer look at the current market dynamics and explore the potential triggers that could impact Just Dial’s share price.
Technical Weakness
Just Dial’s technical indicators are flashing warning signals. The Relative Strength Index (RSI) is near oversold levels, indicating that the stock may be due for a bounce-back. However, the 50-day and 200-day moving averages are bearish, suggesting that the trend is currently down. The stock has been trading below its 50-day moving average for several days, and the RSI has been trending downward. This suggests that the stock is weak and may continue to slide unless it can break through the resistance level.
Support and Resistance
SEBI analyst Deepak Pal has identified ₹800 as a key support level for Just Dial. The stock has been trading above this level for some time, and a breach of this level could lead to further weakness. On the other hand, the resistance level of ₹850-870 is a key hurdle that the stock needs to overcome to break out of its current downtrend. If the stock can manage to break through this level, it could lead to a significant bounce-back.
Reliance Integration
One of the key triggers that could impact Just Dial’s share price is its integration with Reliance Industries. Just Dial has been working with Reliance to expand its digital presence and offer a range of services to customers. The integration is expected to create significant value for Just Dial, and could potentially lead to a significant increase in its share price.
Just Dial’s cash-rich balance sheet is another positive factor that could impact its share price. The company has a strong balance sheet with minimal debt, which gives it the flexibility to invest in growth initiatives and expand its operations. This could lead to a significant increase in its earnings and valuation multiples, making it an attractive investment opportunity.
Digital Growth
Just Dial’s digital growth has been impressive in recent times, with the company reporting significant growth in its digital revenues. The company’s digital platform offers a range of services to customers, including online ordering, payment processing, and customer support. This has helped the company to expand its reach and increase its revenue.
Retail Sentiment
The retail sentiment has turned bullish on Just Dial, with many investors and analysts expecting the stock to bounce back in the near term. The company’s integration with Reliance and its strong digital growth are seen as key triggers that could lead to a significant increase in its share price.
Conclusion
In conclusion, Just Dial’s share price is weak below ₹850, with weak technicals and a bearish trend. However, the integration with Reliance and the company’s cash-rich balance sheet are key triggers that could impact its share price. The stock’s digital growth has been impressive, and the retail sentiment has turned bullish. While the stock may not be able to break through the resistance level in the near term, it could be a good buying opportunity for investors who are willing to take a long-term view.
