KALYANKJIL - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.8

📊 Kalyan Jewellers (KALYANKJIL) shows moderate potential for swing trading. The stock is trading slightly below its 50 DMA (492 ₹) and 200 DMA (519 ₹), reflecting short-term weakness. RSI at 40 indicates the stock is approaching oversold territory, while MACD remains negative, signaling bearish momentum. However, strong quarterly profit growth (+118%) and robust ROE (15.5%) provide fundamental support. High P/E (54.4 vs industry 26.2) suggests valuation risk, but rising volumes indicate active interest.

💡 Optimal Entry Price: Around 460–470 ₹ (near support zone, below current price).

🚪 Exit Strategy: If already holding, consider exiting near 510–530 ₹ (resistance around DMA levels) or if RSI crosses 65 with weakening momentum.

✅ Positive

• 📈 Quarterly profit variation of +118% shows strong growth momentum
• 💰 ROE at 15.5% and ROCE at 15.7% indicate efficient capital use
• 📊 EPS of 8.94 ₹ supports earnings base
• 📦 Strong trading volume above weekly average signals investor activity

⚠️ Limitation

• 📉 High P/E ratio (54.4) compared to industry average (26.2)
• 📊 Debt-to-equity ratio at 0.62 adds leverage risk
• 📉 Dividend yield at 0.32% is low for income-focused investors
• 📊 Stock trading below both 50 DMA and 200 DMA shows technical weakness

🚨 Company Negative News

• 📉 Decline in FII holdings (-2.71%)
• 📊 Technical weakness with negative MACD and below DMA levels

🌟 Company Positive News

• 📈 PAT improved from 256 Cr. to 262 Cr. sequentially
• 💡 DII holdings increased (+1.22%), showing domestic institutional confidence

🏭 Industry

• 📊 Industry P/E at 26.2, Kalyan trades at a premium valuation
• 🏗️ Jewelry and retail demand remains resilient, supporting sector growth

📌 Conclusion

⚖️ Kalyan Jewellers is a moderately good candidate for swing trading. Fundamentals are strong with profit growth and institutional support, but technical indicators show weakness. A cautious entry near 460–470 ₹ could provide upside potential toward 510–530 ₹. Traders should monitor RSI and MACD closely to confirm momentum reversal before committing to positions.

I can also map out support and resistance levels visually so you can track the swing trade setup more effectively.