Shares Kalyan Jewellers India rose sharply on Tuesday, halting their losing run of four straight sessions. The stock advanced 12.32 per cent today to close at Rs 118.05 over its previous close of Rs 105.10. Technical analysts remained mixed on the counter. One suggested to book profit around Rs 118-122 levels and ruled out fresh buying; while another analyst suggested a target price of Rs 139 in the near term.
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “Though Kalyan Jewellers looks lucrative. One needs to be cautious because it is trading near its historical resistance levels of around Rs 120-123. Investors can book profit in the range of Rs 118-122 if tested again. Fresh buy is not advised at current market price.”
AR Ramachandran from Tips2trades said, “Kalyan Jewellers has strong support at Rs 104 on the daily charts. A close above Rs 117.20 today could pave the way for the target of Rs 139 in the near term.”
The stock traded higher than 5-day, 50-, 100- and 200-day moving averages but lower than 20-day moving averages. The counter’s 14-day relative strength index (RSI) came at 50.21. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 28.54.
Kalyan Jewellers has an average target price of Rs 150, Trendlyne data showed, suggesting a potential upside of 27.17 per cent. The scrip has a one-year beta of 0.97, indicating average volatility.
Around 9.65 lakh shares changed hands today on BSE, which was nearly five times higher compared to Kalyan Jewellers’ two-week average volume of 1.98 lakh shares. Turnover on the counter stood at Rs 11.05 crore, commanding a market capitalisation (m-cap) of Rs 12,159.78 crore.
On the earning front, Kalyan Jewellers recorded a consolidated revenue growth of 13 per cent in Q3 FY2023 (December 2022) as compared to the same period in the previous financial year. The company added five net new ‘Kalyan’ showrooms during the recently concluded quarter, taking the total number of showrooms in India to 136 as on December 31, 2022.
Meanwhile, Indian equity benchmarks finished slightly higher today as gains in automobile, state-owned lenders and consumer stocks countered losses in technology, pharma and energy shares. The 30-share BSE Sensex pack rose 50 points or 0.08 per cent to settle at 59,550; while the broader NSE Nifty index moved 13 points or 0.07 per cent higher to finish at 17,662.
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