The share price of Kalyan Jewellers has delivered a remarkable performance, surging significantly from its lowest point in the past year. In today's trading session on the National Stock Exchange (NSE), the stock continued its upward trajectory, reaching an intraday high of ₹487 per share. This marks an impressive gain of approximately 63% from its 52-week low of ₹399.40, capturing the attention of investors.
Gold Price Surge: A Double-Edged Sword for Jewellery Stocks
This rally in the stock occurs against a complex backdrop of skyrocketing gold prices. Market experts point out that gold prices have risen by over 70% in 2025, leading to a direct increase in the cost of jewellery. While this inflates the value of inventory, it has a dampening effect on consumer demand. The resulting pressure on sales volumes has negatively impacted the balance sheets of many jewellery companies, keeping the sector under strain for most of the year.
Avinash Gorakshkar, a SEBI-registered fundamental analyst, explained the situation. He stated that the relentless climb in gold and silver prices has increased raw material costs for companies like Kalyan Jewellers. This, in turn, has made finished jewellery more expensive for buyers, leading to reduced demand. However, he also noted that value buying might emerge in these stocks as broader market signals show signs of a potential trend reversal.
Expert Views: Technical Targets and Trading Strategy
Despite the sectoral challenges, technical analysts see a clear opportunity in Kalyan Jewellers. Sumeet Bagadia, Executive Director at Choice Broking, provided a bullish technical outlook. He indicated that the stock's chart pattern suggests it is poised for further upside. According to his analysis, Kalyan Jewellers has established a strong support base at ₹470 per share, while facing immediate resistance near the ₹510 mark.
Bagadia's recommendation is clear: investors should hold the stock. He sets a near-term price target of ₹530 per share, contingent on the stock sustaining a close above the ₹510 resistance level. For risk management, he advises maintaining a stop loss at ₹470.
Sector Performance and Investor Takeaway
The performance of Kalyan Jewellers stands out in a generally tough year for the jewellery sector. Data reveals that out of ten major listed jewellery firms, only two—Titan Company and Thangamayil Jewellery—have managed to deliver positive returns to their shareholders in 2025. This highlights the selective nature of the current market rally and the company-specific factors at play.
For investors, the key takeaway is a mix of caution and opportunity. The fundamental pressure from high gold prices on demand is a real concern. Yet, the significant technical rebound and expert price targets indicate that for those already holding the stock, maintaining positions with a strict stop loss could be a prudent strategy. As always, investors are advised to consult with certified financial experts before making any investment decisions, considering their individual risk profiles.
