Kalyan Jewellers shares slide to 52-week low: Add on dips or avoid?

Shares of Kalyan Jewellers India Ltd extended their sharp sell-off on Wednesday, plunging as much as 13.64 per cent to hit a one-year low of Rs 390. At last check, the stock was trading 11.66 per cent lower at Rs 398.95. With this, the stock has lost 32.49 per cent over the past six months.

A select set of analysts largely remained 'cautious' on the counter in the near term. Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted, "Kalyan Jewellers has plunged today, breaching its historical support zone around 460 subzone and plummeted to oversold terrain. With the recent breakdown, the technical structure seems disrupted, with room on the downside for the counter. On the levels front, the Rs 380-390 subzone is likely to cushion the fall. On the flipside, the breakdown of Rs 460 is now likely to be seen as an intermediate hurdle for the counter."

Echoing a similar view, Aakash Shah, Technical Research Analyst at Choice Equity Broking, said, "Kalyan Jewellers' stock has witnessed sharp selling pressure, extending its decline to the ninth consecutive day, highlighting strong bearish momentum and sustained distribution. Immediate support is placed in the 390–380 zone. However, no reversal confirmation is visible yet." He added that the earlier consolidation zone near Rs 440–450 now acts as a strong supply area.

Drumil Vithlani, Technical Analyst at Bonanza, observed, "Kalyan Jewellers has witnessed a sharp breakdown from its rising wedge/ascending channel pattern. Immediate support will be at Rs 380-390 and resistance at Rs 450–465."

AR Ramachandran, part-time Sebi-registered research analyst at Tips2trades, said, "Kalyan Jewellers' stock is bearish and also oversold on daily charts with next support at Rs 379. Investors should buy only if a daily close is above the resistance of Rs 431, which could lead to an upside target of Rs 480 in the near term."

Meanwhile, Jigar S Patel of Anand Rathi highlighted a near-term trading range between Rs 380 and Rs 460, noting that a breakout above Rs 445 could improve momentum.