This jewellery stock registers a consolidation pattern breakout; do you own it?

This jewellery stock registers a consolidation pattern breakout; do you own it?

by 5paisa Research Team Last Updated: Dec 13, 2022 - 09:38 am 17.8k Views

Kalyan Jewellers has soared over 7% in Tuesday’s trading session. 

The volatility induced in the Indian market seems to not affect the stock of Kalyan Jewellers, which has seen fresh buying interest from the traders. It has over 7% during the initial hours of Tuesday’s trading session and is one of the top performing stocks of Nifty 500 index. After consolidating in a narrow range for 2 weeks now, it has finally shown a strong breakout from its consolidation pattern and has recorded above-average volume. Interestingly, the stock registered a breakout from its double bottom pattern earlier this month and has jumped nearly 15% since then. It is the price structure that has attracted the traders the most.

The technical parameters are pointing upwards, indicating the bullishness of the stock. The 14-period daily RSI (77.54) is in the super bullish zone and is above its prior swing high. The ADX (43.75) demonstrates strong trend strength explicitly. The MACD has given a bullish crossover too. From the volume’s perspective, the stock possesses strong strength. The Elder Impulse system has indicated a fresh buying interest in the stock. The TSI and KST also indicate long over this stock. The stock is currently over 10% from its 20-DMA, and 15% above its 200-DMA. In a nutshell, the stock has become technically strong and is likely to trend higher in upcoming days. 

In the past 3 months, the stock has surged nearly 25% and has outperformed its peers. Such positivity is expected to continue after increasing buying interest in the stock. It can test the level of Rs 80, followed by Rs 84 in the short to medium term. It provides a good trading opportunity for momentum traders and one can expect decent profit in the near term.

Kalyan Jewellers is one of the most trusted jewellery companies in India. This midcap company has strong expansion plans and is reflected in its business.

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