In recent news, the small-cap jewelry stock of Kalyan Jewellers India Ltd has made significant gains, hitting an all-time high amidst a 4% rally. Investors have been enjoying consistent profits since the company’s listing on the Indian stock market in March 2021. The stock price has seen a remarkable surge, climbing from around INR 55 last year to the current price of INR 140, resulting in a remarkable 150% gain for investors.
Today, the stock soared by 3.91% to reach a new all-time high of INR 141.05 by 12:01 PM IST. A look at the daily chart of Kalyan Jewellers India reveals that the stock had been consolidating within a sideways range until today’s breakout, where it managed to surpass the upper resistance level. This breakout has provided further momentum to the ongoing upward trend, signaling the resumption of the stock’s rally.
The stock had already breached the resistance level of INR 133 after yesterday’s gain of over 4%. Today’s follow-up move has further bolstered investor confidence in this bullish run. With the stock rising for the fourth consecutive session, it may be wise for traders to wait for a cool-off in prices, preferably to the breakout level, before jumping in. Considering the potential of this small-cap stock, long-term targets could be significantly higher, but for the short term, traders can aim for approximately INR 165, which seems like an achievable task.
To arrive at this target, analysts estimate the total height of the range from which the stock is breaking out. Generally, range breakouts propel a stock by a similar distance as the height of the range (resistance level minus support level). Accordingly, it would be logical to set a stop loss level below the support of the range, which in this case is INR 101.
In conclusion, the small-cap jeweler Kalyan Jewellers India Ltd has experienced a significant breakout, reaching an all-time high amidst a 4% rally. Investors have enjoyed consistent gains since the stock’s listing in March 2021, and today’s surge has provided further momentum to the ongoing uptrend. While waiting for a potential cool-off in prices, traders can set their sights on a short-term target of INR 165, taking into account the height of the range from which the stock has broken out. With its promising performance, Kalyan Jewellers India Ltd continues to capture the attention of traders in the jewelry sector.
Disclaimer: The information provided here is for educational and informational purposes only. This article is not an endorsement or a recommendation to buy or sell any securities mentioned, nor does it constitute financial advice. Always conduct thorough research and consider your financial goals and risk tolerance before making any investment decisions.
