Kalyan Jewellers share price crashes 14%, sheds 25% in 9 consecutive sessions— Is it an opportunity to buy?

Kalyan Jewellers share price crashed almost 14% to hit its 52-week low in intraday trade on the BSE on Wednesday, January 21. The gems and jewellery stock opened at ₹450.30 against its previous close of ₹451.60 and crashed 13.6% to its 52-week low of ₹390.

Kalyan Jewellers shares have been in the negative territory for the ninth consecutive session, overall crashing over 25%, during this period.

Why are Kalyan Jewellers shares falling?

Experts do not see any major fundamental negative behind the stock's recent poor performance. There could be some pressure due to gold prices' volatility, but the overall fundamentals remain stable.

The company is set to announce its December quarter earnings on Friday, 6 February.

Brokerage firm Motilal Oswal Financial Services expects Kalyan Jewellers' India business revenue to rise 38%. It expects 25% SSSG (same-store sales growth), led by the gold price increase, and 47 store additions (including Candere and the Middle East), bringing the total count to 483 stores in Q3FY26.

Motilal said gross profit margin in India may dip 50bp YoY to 12.2%, due to promotional schemes given to offset the gold price surge and franchise-led store expansion. EBITDA margin is expected to contract 20bp YoY to 6.5%, as per the brokerage firm.

In the Middle East, Motilal expects 9% YoY revenue growth and flat EBITDA margin on a YoY basis.

Is it the right time to buy Kalyan Jewellers shares?

Experts await the Q3 results to adjust their views on the stock. However, at present, brokerage firm Motilal Oswal has a buy call on the stock with a target price of ₹650.

Motilal highlighted that Q3FY26 began on a strong note for the company. In its pre-quarterly update for Q3FY26, the company reported a consolidated sales growth of nearly 42% YoY against the estimates of 34%, 29.5% in Q2FY26 and 39.5% in Q3FY25.

In Q3FY26, the company launched 21 Kalyan showrooms in India, 1 Kalyan showroom in the UK, and 14 Candere showrooms in India.

While the fundamentals for the stock appear largely healthy, technical experts underscore weakness on the tech charts.

According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, Kalyan Jewellers continues to trade in a bearish setup, firmly positioned below its 200 DEMA, confirming a weak long-term trend.

Patel highlighted that the price structure reflects a series of lower highs and lower lows, indicating sustained selling pressure.

"Momentum indicators further validate this negative bias. The DMI shows dominance of the negative directional line, while Stochastics remains in the oversold-to-weak zone without any meaningful reversal signals. RSI is also placed below the 50 mark, suggesting a lack of bullish momentum," said Patel.

"Despite the possibility of short-term technical pullbacks, these moves are likely to remain corrective in nature rather than trend-changing. Therefore, any bounce towards the ₹430 zone should be viewed as an opportunity to exit existing long positions or reduce exposure. Traders are advised to remain cautious until the stock regains key moving averages with strong volume confirmation," Patel said.

Aakash Shah, Technical Research Analyst at Choice Equity Broking, highlighted that on the daily chart, the Kalyan Jewellers share price has decisively broken below all key moving averages (20, 50, 100, and 200 EMA), confirming a well-established downtrend.

Shah said that the EMAs are stacked bearishly and sloping downward, indicating continued selling pressure and absence of short-term trend support.

"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," said Shah.

According to Shah, immediate support for the stock lies in the ₹390–380 zone, where the price is currently trading. 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. Structurally, the stock has broken below its prior consolidation base near ₹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," said Shah.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.