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 18.5k Views
Listen icon

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.

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
What you must know about Ramdevbaba Solvent IPO?

Ramdevbaba Solvent has set the price band of ₹80-85 per share, with a face value of ₹10. Retail investors' lot sizes are set at 1,600 shares each. Retail investors can make a minimum investment of ₹1,36,000 for a single lot or multiples thereof.

TCS Impresses with Record Wins: Analysts Bullish on Double-Digit Growth

Despite all of the positives from the March quarter, TCS' management looked to be holding back on calling for a growth recovery, according to UBS. Given the unclear macroeconomic, the brokerage appears to be concerned about the danger of transaction deferments and slippages.

Sensex, Nifty down 1% on Iran-Israel tensions; consolidation to continue

Title: Sensex, Nifty slip 1% over Iran-Israel conflict worries; consolidation to continue Sensex, Nifty slip 1% over Iran-Israel conflict worries; consolidation to continue