KALYAN JEWELLERS - SELLING PRESSURE TO CONTINUE AFTER PULLBACKSymbol - KALYANJIL
Kalyan Jewellers has experienced a significant sell-off in recent months, with the stock falling by more than 40%. Historically, such large sell-offs tend to indicate that recovery in the short term can be difficult, as sentiment turns heavily negative and market participants may remain cautious. This suggests that the bearish pressure may persist for a while, and a quick recovery seems unlikely without a significant shift in market sentiment.
We are seeing some pullback and relief rally due to good quarterly results, which has provided a temporary boost to the stock. However, despite this short-term bounce, the overall trend remains bearish, and it is expected to continue until the stock can break above key resistance levels. The trend for Kalyan Jewellers is currently bearish, and this is likely to continue until the stock price manages to break above the key resistance level of 560. Until this level is taken out on the upside, the stock remains vulnerable to further downside pressure. The market is showing signs of weakness, and this trend may not reverse easily in the near term.
In terms of price targets, we could see the stock testing the 520-540 area, which could act as a short-term resistance or consolidation zone. However, it is likely that any bounce from CMP will be temporary, and the stock may fall back after testing this range. The outlook remains cautious, and the stock could potentially test lower levels.
Resistance levels: 545, 560
Support levels: 440, 400
Technically, the bearish trend is expected to persist unless the stock manages to break and sustain above the 560 resistance level. Any retest of the 520-540 support zone should be carefully monitored, as failure to hold this level could suggest further downside risks, with the potential for the stock to continue its decline toward the 440 area & below.
Entry (on retest of resistance), SL & Target levels are indicated on the chart.
