Shares of Kalyan Jewellers India Ltd slipped 5% on Monday in line with correction in the broader market. With today's correction, the stock has lost 43% in January. The stock fell for the fifth straight session on Monday. Kalyan Jewellers stock slipped 5.47% to Rs 433.40 in the current session against the previous close of Rs 458.50 on BSE.
Market cap of the firm fell to Rs 68,796 crore. Total 5.71 lakh shares of the firm changed hands amounting to a turnover of Rs 38.97 crore.
Kalyan Jewellers shares have gained 74.31 per cent in one year and risen 431 per cent in two years.
In terms of technicals, the relative strength index (RSI) of Kalyan Jewellers stock stands at 41.4, signaling it's neither trading in the overbought nor in the oversold zone. The stock has a beta of 0.6, indicating very low volatility in a year.
AR Ramachandran, SEBI registered Independent analyst says, "Kalyan Jewellers stock price is bearish but also oversold on the Daily charts with next support at 410. Investors should buy only if daily close is above resistance of 499 for a target of 558 in the near term."
Kushal Gandhi, Technical Analyst, StoxBox said, "The price action of Kalyan Jewellers had fallen victim to the 2B rule in early January. During an intermediate trend, the 2B pattern often indicates the onset of a correction, signalling major technical turning points. This shift in trend was further validated by subsequent days of downward movement, culminating in a breakdown from an elongated double-top formation. Consequently, there has been a noticeable decline in buyer demand and price strength compared to both its performance over the past 12 months and the broader market. The stock has plunged below its 200DMA, triggering additional selling pressure. The stock has experienced a reduction of 45% in its gains over the past 17 trading sessions, marking its most significant decline since its initial public offering. Therefore, we advise against any attempts to engage with this declining trend."
In its Q3 update, Kalyan Jewellers said its India operations witnessed revenue growth of approximately 41 per cent in the third quarter, led by strong festive and wedding demand across both gold and studded categories.
Q3 recorded healthy same-store-sales (SSS) growth of 24 per cent, Kalyan said adding it launched 24 Kalyan showrooms in India during the recently concluded quarter, with a strong pipeline of showrooms set to open over the course of the ongoing quarter.
"In the Middle East, we witnessed revenue growth of approximately 22 per cent when compared to the same period in the previous financial year. Middle East contributed 11 per cent to our consolidated revenue for the recently concluded quarter. During the recently concluded quarter we launched our first showroom (Company Owned Company Operated) in the United States of America," Kalyan Jewellers India said.