₹30000 crores wiped out in 11 days, when will Kalyan Jewelers' decline stop?

Kalyan Jewellers Shares: A Recent Trend Analysis

Introduction to the Current Situation

Kalyan Jewellers shares have been on a rollercoaster ride this year, marking a significant shift in their trajectory. After reaching an all-time high in early January 2025, the stock has seen a sharp decline, falling consecutively for three trading days. Investors are concerned about what’s driving this drop and what it means for the future. Let’s dive deep into the factors at play.

Overview of the Recent Decline

Despite its stellar performance over the past year, Kalyan Jewellers shares are now experiencing profit booking. The selling pressure has pushed the stock price down significantly, with a 6.93% drop on the Bombay Stock Exchange (BSE) recently.

A Quick Look at the Stock’s History

Kalyan Jewellers had a remarkable climb in 2024, gaining over 116% throughout the year. From trading below ₹70 three years ago, the stock soared to ₹800 at the start of 2025. This remarkable rise made it a favorite among investors until the recent downturn.

Reasons Behind the Recent Decline

Profit Booking as a Primary Factor

Profit booking is the most prominent reason behind the fall. Investors who rode the wave of rapid gains last year are now cashing in, which has triggered the current selling spree.

Broader Macroeconomic Influences

The global and domestic economic conditions have added to the pressure. Concerns about interest rates, inflation, and overall market sentiment are influencing the stock’s movement.

Chart Indicators and Market Analysis

The stock has entered the oversold zone, with its Relative Strength Index (RSI) at 21. This signal heightened selling activity. As per technical experts, the stock has been forming lower tops and lower bottoms, a bearish trend indicating further potential downside.

Key Market Data and Trends

Market Cap Decline in Two Weeks

The company’s market capitalization has seen a sharp decline, dropping from ₹82,000 crores on January 2 to less than ₹52,000 crores by mid-January. This translates to a loss of ₹30,000 crores in investor wealth within just two weeks.

Current Stock Prices and Intraday Trends

On its most recent trading day, the stock closed at ₹501.65, down 6.93% from the previous session. Intraday, it touched a low of ₹498.85, showing significant volatility.

Brokerage Perspectives on Kalyan Jewellers

Insights from Motilal Oswal’s Chandan Taparia
Chandan Taparia highlights the stock’s inability to surpass the critical ₹780–₹795 zone despite multiple attempts. He predicts that if the stock falls below ₹530, it could potentially decline further to ₹490–₹495.

HSBC and Citi’s Target Price

Despite the current downturn, HSBC and Citi maintain a bullish long-term view with a target price of ₹810, suggesting recovery and growth potential.

Executive Director’s Take on the Situation

In an interview with CNBC-TV18, Kalyan Jewellers’ Executive Director stated that the current decline is short-term and primarily driven by profit booking and broader market corrections. He emphasized the strong returns delivered over the last two and a half years.

Historical Performance of Kalyan Jewellers Shares

Growth Trajectory Over the Past Year

Kalyan Jewellers shares delivered exceptional returns in 2024, rising from a one-year low of ₹322.05 on February 1 to a record high of ₹794.60 by January 2, 2025.

Record High Achieved in January 2025

The beginning of 2025 marked the peak of the stock’s performance, reaching a record high of ₹794.60. However, the momentum did not sustain, and the stock is now down over 36% from this level.

Performance Relative to Key Levels

The stock’s failure to maintain its position above ₹800 indicates resistance at higher levels. Support is anticipated at around ₹490, making this a critical zone for investors to watch.

The Road Ahead for Investors

Potential Support and Resistance Levels

With the stock currently oversold, technical indicators suggest potential support around ₹490. Resistance remains in the ₹780–₹800 range.

Long-term vs. Short-term Investment Outlook

While the short-term outlook appears bearish due to ongoing profit booking, long-term investors may find opportunities to accumulate at lower levels, given the stock’s robust historical performance and strong fundamentals.

FAQs About Kalyan Jewellers Shares

What is the current RSI of Kalyan Jewellers shares?

The RSI of Kalyan Jewellers shares currently stands at 21, indicating that the stock is in the oversold zone.

Why have Kalyan Jewellers shares been declining recently?

The decline is primarily due to profit booking, market corrections, and broader macroeconomic factors.

What is the long-term potential of Kalyan Jewellers shares?

Despite recent challenges, the stock has shown strong historical performance. Brokerage firms like HSBC and Citi maintain a target price of ₹810, signaling long-term growth potential.

What target prices are brokerage firms predicting?

HSBC and Citi have set a target price of ₹810 for Kalyan Jewellers shares, reflecting optimism about the company’s future.

How has the company performed in the past year?

In the past year, the stock rose by about 147%, climbing from ₹322.05 in February 2024 to ₹794.60 in January 2025.