The bearish run coincides with gold prices surging to fresh record highs of nearly Rs 1.6 lakh per 10 grams. When gold prices rise sharply, jewellery becomes more expensive, leading to postponement of purchases. Mass and mid-market consumers tend to cut back, causing a decline in volume growth, particularly for plain gold jewellery.
While volumes may soften, revenues can still grow because of higher gold prices. However, this growth is price-led rather than demand-led. For jewellery makers, this often results in higher ticket sizes but fewer units sold.
Last week, the company appointed Radhika Ramani and C.R. Rajagopal as Additional Directors in the capacity of Non-Executive and Independent Directors. Both appointments are for a term of five consecutive years. The board said the appointments are in line with the company’s ongoing focus on strengthening corporate governance, enhancing independent oversight and driving long-term value creation.
Technical view
“On the daily chart, price has broken decisively below all key moving averages (20, 50, 100 & 200 EMA), confirming a well-established downtrend. The EMAs are stacked bearishly and sloping downward, indicating continued selling pressure and absence of short-term trend support,” Aakash Shah, Technical Research Analyst at Choice Equity Broking, said.
The latest breakdown candle is a large bearish candle accompanied by expanded volume, suggesting panic selling or aggressive unwinding. The lack of any immediate fundamental trigger further reinforces the technical nature of this move, pointing toward strong institutional selling activity.
Immediate support is placed in the Rs 390–380 zone, where price is currently reacting. This area may provide a temporary pause or technical bounce; however, no reversal confirmation is visible yet. A sustained breakdown below this zone could open the doors for further downside toward lower demand areas, Shah said. Structurally, the stock has broken below its prior consolidation base near Rs 440–450, which now acts as a strong overhead supply zone. As long as price remains below this level, the broader trend bias stays bearish and any bounce should be viewed as a corrective move rather than a trend reversal, he added.
Kalyan Q3 business update
The company reported a robust 42% year-on-year jump in consolidated revenue for the third quarter of FY2026.
The jewellery retailer said festive demand drove strong traction across categories in India, resulting in a broad-based growth of ~42% in domestic operations. Same-store-sales-growth stood at 27%, with revenue momentum sustained despite gold price volatility. International operations also logged a 36% rise in revenue, led by 28% growth from Middle East markets, primarily driven by same-store-sales expansion.
The company’s digital-first jewellery platform, Candere, recorded a 147% revenue surge over the same period last year.
Post the company’s Q3 business update, domestic brokerage firm Motilal Oswal has stated that it maintains a bullish view on the stock, assigning a ‘Buy’ rating with a target price of Rs 650, an upside potential of 44% from the stock’s previous closing price of Rs 452.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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