Gold price rally fuels Kalyan Jewellers shares close to record high. Do you own?

Stock market today: Amid gold and silver price rally in domestic and international market due to Israel-Hamas war, jwellery companies are expected to benefit as market is expecting margin benefit on their buffer stock. Kalyan Jewellers shares are one of them. This jewellery stock has risen close to its life-time high of ₹309.75 apiece on NSE, despite rallying 135 per cent in year-to-date (YTD) time.

Israel-Hamas war in focus

Kalyan Jewellers share price today opened upside at ₹289.75 apiece on NSE and went on to hit intraday high of ₹298.90 per share levels, just 3.50 per cent away fro its life-time high of ₹309.75 per share levels.

According to stock market experts, Kalyan Jewellers India is expected to benefit from recent gold price rally as jewellry stocks are expected to rise after ther recent gold and silver price rally, which was fueled mainly by Israel-Hamas war. They said that companies garner margin benefit on their buffer stock they have. However, they also maintained that this rally in Kalyan Jewellers shares are time specific and if it fails to break ₹300 levels in near term then one should book profit as the stock may soon go towards ₹260 odd levels on profit booking trigger in gold and silver prices.

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On why Kalyan Jewellers shares are rallying, Saurabh Jain, Vice President — Research at SMC Global Securities said, "Rally in Kalyan Jewellers shares are mainly fuled by gold and silver price rally. Market is expecting margin benefit for the company after recent rally in gold and silver prices, which is mainly due to the geopolitical uncertainly caused by Israel-Hamas war. As jewellry market is expected to see rise in demand due to fast approaching Diwali 2023 followed by a longer wedding season, Kalyan Jewellers India Ltd may garner some extra profit due to this gold and silver price rally. This benefit is expected to come from its buffer stock that most of the commodity-driven companies keep for near term use."

Kalyan Jewellers share price target

Asked about Kalyan Jewellers share price technical outlook, Ganesh Dongre, Senior Manger — Technical Research at Anand Rathi said, "Kalyan Jewellers shares are forming double hammer pattern on chart. The stock is facing hurdle at ₹310 apiece levels. On breaching this hurdle, it may go up to ₹340 per share levels. However, in case the stock fails to breach this hurdle and remians below ₹300 throughout this week, then it may come down towards ₹280 and ₹260 levels. so, Kalyan Jewellers shareholders are advised to maintain trailing stop loss at ₹260 per share levels and book profit on Friday if it trades below ₹300 on the weekend session."

BSE share price up over 200% in 2023 so far. What’s next?

Shares of Kalyan Jewellers India Ltd are one of the multibagger stocks that Indian stock market has delivered in 2023. In last one month, it has delivered over 40 per cent return to its shareholders.

Rally in Gold, silver prices

After the outbreak of Israel-Hamas war, gold prices rallied from its lows of ₹56,421 per 10 gm to ₹61,124 per 10 gm levels. Currently, gold rate today on MCX is quoting ₹60,533 per 10 gm. Likewise, silver rate today on MCX is ₹71,805 per kg. After outbreak Israle palestine conflict, silver price rebounded from its lows of ₹65,666 to ₹73,599 per kg levels.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.