Jio Financial Services Q1 results: Business growth, outlook, technical and options outlook

Jio Financial Services, a subsidiary of Reliance Industries, will announce its results for the June quarter on 17 July.

The non-banking financial company (NBFC) has been in the news in recent weeks after receiving multiple Securities and Exchange Board of India (SEBI) approvals to launch its mutual fund and stock broking businesses in partnership with the U.S.-based global investment giant BlackRock. Yesterday, Jio BlackRock Mutual Fund received regulatory approval to launch four new passive mutual fund schemes.

Jio BlackRock Asset Management's first new fund offer (NFO) attracted investments totalling ₹17,800 crore across three cash and debt mutual fund schemes. Jio BlackRock Broking Pvt Ltd has also received regulatory approval to start operating as a brokerage firm in India.

Jio Financial Services reported consolidated revenue of ₹418 crore in the same quarter last year and ₹493 crore in the previous quarter. Meanwhile, its net profit stood at ₹313 crore in the June quarter of FY25.

Investors will closely track the management commentary on new business growth and future business outlook during the result announcement.

Ahead of the announcement of the Q1 results, Jio Financial shares ended the Wednesday’s session at ₹319, down 0.6%.So far this year, Jio Financial shares have provided investors with a return of almost 4.8%.

Technical view

The technical setup of Jio Financial Services remains bullish as the stock broke the crucial trendline resistance zone connecting its all-time high and subsequent swing highs of September and December 2024. Additionally, it witnessed the crossover of its 21-week and 50-week exponential moving averages (EMAs), signalling strength.

However, for short-term clues, Jio Financial Services has an immediate resistance zone around ₹335, while crucial support is around ₹298 zone. Unless the stock breaks this range, it may remain range-bound. Meanwhile, a break of this range will provide further directional signals.

Jio Financial Services' options outlook

The open interest data of 31 July expiry saw significant call options base around 330 strike, indicating resistance for the stock around this zone. Meanwhile, the put base was seen at 300 strike, suggesting a support for Jio Financial Services around this zone.

As of 17 July, Jio Financial Services ATM strike is at 320, with both the call and put options priced at ₹17. This suggests an implied price movement of roughly ±5.3% ahead of July expiry. However, let's examine the historical price behaviour of Jio Financial Services during previous earnings announcements.

Options strategy for Jio Financial Services

Considering the movement of ±5.3% implied by the options market, traders can plan a long or short volatility trade through Long or Short Straddles based on their view on volatility and price action. In a nutshell, in a Long Straddle, a trader buys an ATM call and a put option of the same strike and expiry of Jio Financial Services in expectation of a move of more than ±5.3% on either side. Conversely, in a Short Straddle a trader will sell a call and put on the same strike and same expiry if he or she expects a move less than ±5.3%.