Shares of Kalyan Jewellers India Ltd have been on a sharp downward trend in 2025, plummeting 36.66% from their January 2 all-time high of ₹794.60 to a low of ₹503.25 on Friday. This marks the stock’s 10th drop in 13 sessions this year. Despite the company strongly denying rumors of IT raids and allegations of bribery, investor confidence remains shaky.
The company dismissed claims of impropriety during a recent earnings call, labeling bribery allegations as “absurd” and confirming no IT raids had occurred. Executive Director Ramesh Kalyanaraman emphasized Kalyan Jewellers’ transparency, noting ₹450 crore of debt repayment and a ₹170 crore dividend payout in the last 18 months. He also quashed rumors of extravagant spending, clarifying that the company owns only a helicopter, with no plans for an aircraft purchase.
Technically, the stock sits in oversold territory, with a Relative Strength Index (RSI) of 21, well below the threshold of 30. Technical analyst Riyank Arora suggested that the key support level at ₹515 might spark a rebound, potentially driving prices to ₹560–₹570. However, he advises caution, recommending a stop loss near ₹510.
While the recent decline is alarming, Kalyan Jewellers remains a long-term performer. Over the past year, the stock has delivered a 39% return, and its three-year gain stands at a staggering 626%. With disciplined trading strategies and its position in the NIFTY 500 index, the stock’s oversold status could present an opportunity for bold investors.
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