Kalyan Jewellers : Shares Extend Losses, Hit Fresh One-Year Low in Volatile Trade

Kalyan Jewellers: Shares of Kalyan Jewellers India Ltd remained under pressure on Tuesday, continuing their recent slide amid sustained selling interest. The stock fell as much as 5.39 percent during intraday trade, touching a fresh one-year low of Rs 347.65. Some buying interest emerged later in the session, helping the shares recover part of the losses. At last count, the stock was trading at Rs 365.60, down 0.50 percent for the day.

Despite the mild recovery, the broader trend remains weak. Over the past month, Kalyan Jewellers’ share price has declined nearly 25 percent, while losses over the last six months have widened to close to 39 percent. The Kerala-based jewellery retailer is expected to announce its third-quarter financial results for the current fiscal on February 6, a key event that market participants are watching closely.

Sustained Pressure Weighs on Market Sentiment

The recent decline reflects a broader loss of confidence among traders, with the stock struggling to find stable support levels. Heavy volumes during declines suggest that selling pressure has remained persistent, overshadowing intermittent attempts at recovery. Market participants note that the stock’s inability to hold key price zones has reinforced a cautious outlook in the near term.

The sharp correction has also pushed the stock into deeply oversold territory, a condition that sometimes precedes short-term pullbacks. However, analysts caution that oversold readings alone may not be sufficient to trigger a sustained reversal unless supported by strong price action or positive triggers.

Technical Indicators Signal Weak Structure

From a technical perspective, analysts largely maintain a bearish stance on the counter. Osho Krishan, Senior Analyst for Technical and Derivative Research at Angel One, said the stock has broken below a long-standing support band, disrupting its earlier price structure.

According to Krishan, the shares have slipped into oversold territory after breaching the historical support zone around Rs 380–400. He added that the breakdown has opened further downside risk, with limited signs of immediate recovery. While the Rs 400 range could act as an intermediate resistance if prices attempt to rebound, a decisive move above this zone would be needed to provide any meaningful relief. On the downside, he identified the Rs 340 area as the next key support level to monitor.

Analysts Flag Rs 340 as Key Support Zone

Echoing a similar view, Ravi Singh, Chief Research Officer at Mastertrust, said the charts indicate continued weakness. He noted that unless there is a strong reversal in momentum, the stock could drift towards the Rs 340 level in the near term. Both analysts emphasised that traders should remain cautious given the prevailing trend and elevated volatility.

Momentum Indicators Remain Deeply Oversold

Technical indicators further underline the stock’s fragile condition. Kalyan Jewellers is currently trading below all its major simple moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day averages. This alignment typically signals a strong bearish trend.

The 14-day Relative Strength Index stands at 16.91, well below the 30-mark that defines oversold conditions. While such low RSI levels can sometimes attract short-term buying, they also highlight the intensity of recent selling pressure.

Valuation Snapshot and Financial Metrics

According to data available from the BSE, the company is trading at a standalone price-to-earnings ratio of 40.95, while the consolidated P/E stands at 40.57. The price-to-book value is reported at 8.69. The company has posted standalone earnings per share of 8.93 and consolidated EPS of 9.01. Its return on equity is currently placed at 21.22 percent, reflecting healthy profitability metrics despite the recent stock price correction.

With earnings around the corner, investors are likely to remain focused on both operational performance and management commentary to assess whether the current decline has further room to run or if stability may emerge in the weeks ahead.