Festive Boost: Titan, Kalyan, Goldiam can rally up to 18%, charts say

With festive season round the corner and gold sales expected to rise, gold-related stocks are likely to be in focus, the charts are indicating more upside for these stocks

Jewellery stocks are seeing traction after Titan reported a signicant jump in Q2 revenues, up nearly 78 per cent on a y-o-y basis, back to pre-Covid levels. The market cap of the Tata group stock crossed the Rs 2 trillion mark, and the stock trades at record level, with analysts expecting earnings update for the company. READ MORE

This apart, the recent 17 per cent decline in gold prices augurs well for the jewellery stocks. According to a bloomberg report, the World Gold Council data shows that Indians bought 315.9 tons of gold-use jewelry in 2020, almost equal to the combined purchases in the Americas, Europe and Middle East. China is the biggest buyer at 433.3 tons.

Indians bought 194.3 tons of gold in 2019’s October-December festival period and 186.2 tons during the same period last year, World Gold Council data shows.

With the festive season just about to kick-off the demand for gold this year is likely to be optmistic. According to Ashish Pethe, chairman of the All India Gem and Jewellery Domestic Council, pent-up demand and lower prices could boost last-quarter gold sales as much as 15% higher than in the same period two years ago, the bloomber report added.

Meanwhile, here's what the charts have to say about the prominent jewellery stocks.

Titan Company Limited (TITAN)

Likely target: Rs 2,500 to Rs 2,700
Upside potential: 6.5% to 14%

A gap-up opening in intraday trade, which added 8 per cent gain with strong volumes show further upside towards Rs 2,500 to Rs 2,700 levels for Titan. This up move claimed an uncharted territory with firm positive sentiment, triggering a fresh breakout from a medium-term perspective. The immediate closing Festive Boost: Titan, Kalyan Jewels, Goldiam can rally up to 18%, charts saybasis support stays at Rs 2,200 and then next at Rs 2,100 levels. CLICK HERE FOR THE CHART
 
Rajesh Exports Ltd (RAJESHEXPO)
Likely target: Rs 700

Upside potential: 9%

The shares of Rajesh Exports Ltd have support of the 100-day moving average (100-DMA), currently placed at Rs 580 level. That’s said, a firm close above the immediate resistance of Rs 640, followed by addition in volume may signal a breakout towards Rs 700, according to the daily chart. The overall trend is heading in the direction of the same resistance with a support of Rs 595. The sentiment at the counter will remain positive until the stock defends the 100-DMA.  CLICK HERE FOR THE CHART
 
Kalyan Jewellers India Ltd (KALYANKJIL)
Likely target: Rs 83 and Rs 88

Upside potential: 9% to 15%

With the intraday up move on October 7, 2021 the stock conquered the significant resistance of Rs 76 and now hints a rally in the direction of Rs 83 and Rs 88 levels. Also, the “Higher High, Higher Low” formation indicates a stable upside with corrective moves witnessing buying momentum, as per the daily chart.  The Moving Average Convergence Divergence (MACD) has successfully sustained above the zero line suggesting the direction to stay upward for coming sessions.  CLICK HERE FOR THE CHART
 
Thangamayil Jewellery limited (THANGAMAYL)
Likely target: Rs 1,400
Upside potential: 17%

The shares of Thangamayil Jewellery have doubled since April 2021. Today, the new all-time high marks a beginning of a new rally that may points towards Rs 1,400-level. The “Higher High, Higher Low” formation constantly sees buying momentum in the overbought category of Relative Strength Index (RSI) suggesting a firm underneath strength, according to the weekly chart. The support for the stock is located at Rs 1,050 levels.  CLICK HERE FOR THE CHART

 
Goldiam International Ltd (GOLDIAM)
Likely target:  Rs 1,150
Upside potential: 18%
 
Since July 2021 the stock has run up over 140 per cent with momentum staying highly optimistic. The RSI is constantly witnessing bullish sentiment in the overbought category signifying further upside with a closing basis support of Rs 850 levels, according to the monthly charts. The up moving trend indicates an upside target of Rs 1,150.  CLICK HERE FOR THE CHART