Diwali cheer: PC Jeweller, Kalyan Jewellers may gain up to 40%, hint charts

So far this month, PC Jeweller, Rajesh Exports and Kalyan Jewellers have rallied up to 21 per cent on hopes of a bumper sales this Diwali season.

Shares of jewellery related firms are likely to be in focus in the near owing to the Diwali festive season, and more so on the occasion of Dhanteras - whcih is considered as an auspicious day to buy Gold. 

In the recently concluded July-September quarter, Titan had reportedly clocked a healthy sales volume of 18 per cent YoY growth, while Kalyan Jewellers sales grew by 20 per cent. Analysts expect strong sales this festive season owing to pent-up demand.

WATCH VIDEO: Should you buy stocks of jewellery retailers this Dhanteras? 

So far this October, shares of PC Jeweller and Rajesh Exports have surged over 20 per cent, and Kalyan Jewellers has gained 11 per cent. Titan too has added 2 per cent and trades near its all-time high mark. 

Amid the growing anticipation of strong demand, here’s the technical outlook on jewellery related stocks:-

PC Jeweller Ltd (PCJEWELLER)

Likely target: Rs 120 and Rs 140

Upside potential: 20% and 40%

Post 2018, the current year is the period where the stock has seen some respite from sustained selling pressure. Over the span of 4 years, PC Jeweller had massively underperformed the overall markets and was mostly out of investors’ radar.

However, now it appears like the stock has broken its four-year downtrend and is ready to scale higher levels. The present daily set-up reveals a upside targets of Rs 120 and Rs 140, provided Rs 75 is held resolutely. CLICK HERE FOR THE CHART

Titan Company Limited (TITAN)

Likely target: Rs 3,000

Upside potential: 11%

Even as the stock Titan seems to be struggling to conquer its hurdle at Rs 2,700 since last October, the ensuing selling pressure has failed to knock out the underlying robust strength and momentum at the counter. The stock continues to trade on the higher side of the barrier and the moment if it clears the hurdle, a breakout rally could lead the stock towards the Rs 3,000-mark. For now, support for the stock exists at Rs 2,500 level. CLICK HERE FOR THE CHART

Kalyan Jewellers India Ltd (KALYANKJIL) 

Likely target: Rs 130 and Rs 145

Upside potential: 21% to 35%

Shares of Kalyan Jewellers India exploded positively after forming a “Golden Cross” on the daily chart. The price texture at this moment is poised for the next upward rally, with immediate support seen at Rs 93 followed by Rs 85. Thus, until these cushions are held positively, the bulls can take the stock to Rs 130 and Rs 145 by the “Higher High, Higher Low” formation. CLICK HERE FOR THE CHART

Rajesh Exports Ltd (RAJESHEXPO) 

Likely target:Rs 750 and Rs 775

Upside potential: 8% to 11.50%

Rajesh Exports has surged passed the 200-day moving average (DMA) for the first time since April this year. In addition, the breakout above this average over Rs 640 has built a sustained atmosphere for the short-term. The 200-DMA is positioned at Rs 647 and as long as the stock trades over this mark, the potential of it swinging in the direction of Rs 750 and Rs 775 in the near-term becomes legit. These are its next hurdle marks, shows the daily chart. CLICK HERE FOR THE CHART

Thangamayil Jewellery limited (THANGAMAYL)

Outlook: Needs to reflects sustained move over Rs 1,118
 

To breakout on the upside, shares of Thangamayil Jewellery needs to hold ground over the 200-DMA set at Rs 1,118. The stock does indicate a breakout from a moderate consolidation near its 200-DMA took place in August  that led to conquer the same moving average. This strength needs to hold ground and exhibit sustainability. Only as and when that is proved, the stock action could trigger a rally towards Rs 1,400. CLICK HERE FOR THE CHART