Kalyan Jewellers share price surges 28.5% in the last 6 sessions; what’s next for the jewellery stock?

Kalyan Jewellers share price surged by 28.5% over the past six sessions, highlighting the extreme volatility the shares have experienced in recent days. However, Kalyan Jewellers share price today was marginally dipping into negative territory and was experiencing little movement during the initial trading session.

Kalyan Jewellers share price today opened at ₹567.85 apiece on the BSE, the stock touched an intraday high of ₹571.60 apiece and an intraday low of ₹552.40 per share. Over the past year, Kalyan Jewellers share price has experienced a significant increase of 62.06%, according to Trendlyne data.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities highlighted that Kalyan Jewellers share price is rising after the Budget 2025 proposal to reduce duty on various precious metals. The Government of India has proposed reducing the duty on gold jewellery from 25 to 20%. In contrast, it has also proposed reducing the duty on titanium jewellery from 25% to 5%. This has spurred value buying in jewellery stocks that are available at discounted prices. Kalyan Jewellers share price was recently under intense selling pressure, and they are benefiting from this value buying.

On January 31, Kalyan Jewellers share price touched the upper circuit limit following the results for the December quarter. The company experienced a 21.23% rise in consolidated net profit during the third quarter of the 2024-25 fiscal year. In the same period last year, the net profit was reported at ₹180.37 crore. Total revenue surged by 40% to ₹7,318.19 crore in the December quarter of the 2024-25 fiscal year, compared to ₹5,243.20 crore in the corresponding period of the previous year.

"We are extremely excited with the way the current year has progressed. The current quarter has started off well despite the volatility in gold prices. We are upbeat about the ongoing wedding season and expect to end the financial year on a strong note," said Kalyan Jewellers India Executive Director Ramesh Kalyanaraman.

What's next for the jewellery stock?

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers said that on the weekly chart, Kalyan Jewellers has rebounded strongly after taking support at the Ichimoku cloud, surging nearly 41% from its recent low.

This signals strong bullish momentum. However, at the current level, the gap from 13-01-2025 remains unfilled, which could act as a potential resistance zone in the upcoming sessions. Given this technical setup, we recommend booking profits in the ₹610-620 range.

“A fresh buying opportunity will emerge only if the stock manages to close above ₹620 on a daily close basis, confirming strength for further upside. Until then, caution is advised as the stock may witness selling pressure near resistance. Traders should watch price action closely before taking new positions,” added Patel.

Sachin Gupta, Senior Research Analyst at 5paisa highlighted that Kalyan Jewellers share price witnessed a sharp decline in January after reaching an all-time high of 795.40 and corrected more than 45% during the month, hitting a low of 420 levels on January 28th. Since then, the stock has shown some short covering, as seen on the chart. On the daily chart, the stock has also moved above the middle Bollinger Band and the 21-day SMA, accompanied by higher volume, suggesting further recovery in the short term. Momentum readings have also regained strength from the oversold territory with a positive crossover.

Hence, we are expecting a positive move in Kalyan Jewelers. One can consider a buy-on-dips strategy around the 560-550 level, with short-term targets of 600/650. However, a stop loss should be placed below the 520 level.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.