Shares of Kalyan Jewellers saw a sharp decline on Wednesday, January 21, 2026, wiping out a significant portion of investor wealth in a single trading session. The jewellery stock fell by almost 14% on the BSE, hitting a new 52-week low during intraday trade. This latest drop extends a painful losing streak for the company. Kalyan Jewellers share price has now been in the red for nine consecutive sessions. Over these nine days, the stock has lost more than 25% of its value.
The sudden fall in the Kalyan Jewellers share price caught many traders off guard. The stock opened the day at ₹450.30, slightly above its previous close of ₹451.60. However, selling pressure quickly mounted. The price spiraled downward to a low of ₹390, which marks its lowest level in the past year. This steep drop raises a common question among investors: Is this massive correction a buying opportunity, or is it a signal to exit?
Why is the Kalyan Jewellers share price falling?
When a stock falls this rapidly, investors often look for a specific negative news trigger. Surprisingly, regarding Kalyan Jewellers, there is no major bad news from the company itself. Experts believe the fall is largely technical and driven by broader market sentiment rather than a sudden failure in the business model.
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One factor influencing the jewelry sector is the volatility in gold prices. Gold is the primary raw material for Kalyan Jewellers. When gold prices fluctuate wildly, it can create uncertainty about profit margins. However, most analysts agree that this alone does not explain a 25% crash over less than two weeks.
The market is currently in a nervous phase. Broader indices have been correcting, and stocks that have seen significant gains in the past year, like Kalyan Jewellers, are witnessing profit-booking. Investors are moving to cash, and high-valuation stocks are taking the hardest hit.
What the brokerages are saying about Q3 performance
Despite the crashing share price, the company’s business operations appear to be running smoothly. Kalyan Jewellers is scheduled to announce its December quarter earnings (Q3FY26) on February 6, 2026. Brokerage firm Motilal Oswal Financial Services remains optimistic about the upcoming results.
Motilal Oswal expects strong growth in the company’s India business. Their estimates suggest that revenue from India could rise by 38% year-on-year. This growth is expected to be driven by a 25% increase in same-store sales (SSSG), meaning existing shops are selling more compared to the same time last year. The rise in gold prices during the quarter also helped boost the revenue numbers in rupee terms.
In terms of store expansion, Kalyan Jewellers has been aggressive. In the December quarter, the company added 47 new stores, including those of its brand Candere and outlets in the Middle East. This brings their total store count to 483 as of Q3FY26. They launched 21 Kalyan showrooms in India, 1 in the UK, and 14 Candere showrooms in India during the quarter.
However, it is not all positive on the margins front. Motilal Oswal expects gross profit margins in India to dip slightly by 50 basis points (bps) year-on-year to 12.2%. This contraction is likely due to the promotional schemes the company offered to customers to offset the surge in gold prices. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin is also expected to contract by 20 bps to 6.5%.
In the Middle East region, the brokerage expects a steady performance with revenue growth of 9% year-on-year and flat EBITDA margins.
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Technical outlook: Is there a bottom?
While the fundamentals seem stable, the technical charts paint a scary picture for short-term traders. The Kalyan Jewellers share price has broken several key support levels, leading to panic selling.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, notes that the stock is trading in a bearish setup. It is firmly positioned below its 200-day exponential moving average (DEMA). This is a classic sign of a weak long-term trend.
Patel points out that the price chart is showing a series of lower highs and lower lows. This pattern indicates that sellers are in control, and every time the stock tries to bounce back, it faces fresh selling pressure at lower levels.
He adds that momentum indicators are not giving any comfort. The Directional Movement Index (DMI) shows the negative line dominating the positive one. The Stochastic oscillator remains in the oversold zone, but that does not guarantee a bounce. Usually, an oversold stock bounces back, but in a strong downtrend, it can stay oversold for a long time. The Relative Strength Index (RSI) is also below 50, suggesting a lack of bullish momentum.
Patel advises caution. He believes any short-term bounce from current levels is likely to be a “dead cat bounce”—a temporary recovery before the downtrend resumes. He suggests that if the stock bounces toward the ₹430 level, it could be a good exit point for existing investors looking to cut losses.
Aakash Shah, a Technical Research Analyst at Choice Equity Broking, shares a similar view. Shah observes that the Kalyan Jewellers share price has broken below all key moving averages (20, 50, 100, and 200 EMA). The fact that the stock broke these levels with high volume suggests panic selling and unwinding by institutional investors.
According to Shah, the immediate support is at the ₹390–380 zone, which is where the stock is currently trading. This level might offer a temporary pause, but there is no confirmation of a reversal yet. If the stock closes below ₹380 on a daily basis, it could slide further toward lower demand zones.
Earlier, the stock had a consolidation base near ₹440–₹450. This range now acts as a strong overhead resistance. As long as the Kalyan Jewellers share price stays below ₹450, the trend remains bearish.
Should you buy Kalyan Jewellers at current levels?
This is the big question. For long-term investors, the 25% drop might look like a bargain. However, professional advice suggests waiting for stability.
There is a clear split in opinion between fundamental and technical views. From a fundamental perspective, the business is growing. Revenue is increasing, and store count is expanding. If the Q3 results (due on Feb 6) come out strong, the stock might find a floor.
Motilal Oswal maintains a “Buy” rating on Kalyan Jewellers with a target price of ₹650. This target suggests significant upside from the current levels, but it is based on a long-term view.
On the flip side, technical analysts warn that momentum is against the stock. Trying to catch a falling knife (buying a stock while it is falling rapidly) can be risky. If the broader market remains weak, Kalyan Jewellers share price could test lower levels of ₹360 or even ₹340 before stabilizing.
For investors looking to buy, a staged approach might be best. Instead of investing a lump sum, one could consider buying in small tranches. If the stock drops to ₹370–380, one part of the allocation can be deployed. Another part can be added if it shows technical strength, such as closing above the 20-day moving average.
For current holders of the stock, the situation is tough. If the investment horizon is short-term, it might be wise to exit on any bounce. Long-term holders with a high risk appetite might hold on, relying on the strong business fundamentals and the expectation of a turnaround in FY26.
Summary of the situation
The sharp decline in Kalyan Jewellers share price is driven more by technical factors and market sentiment than by business fundamentals. While the company is expected to post solid revenue growth in Q3FY26, the stock has broken key technical supports.
Investors should keep an eye on the February 6 earnings release. A positive surprise on margins or sales could trigger a relief rally. Conversely, any disappointment could lead to further downside.
Until then, the stock remains in a bearish grip, and caution is warranted.
FAQs
Q: Why did Kalyan Jewellers share price crash 14% in a day?
A: There is no specific negative news from the company. The crash is attributed to technical selling, profit-booking, and broad market weakness. The stock broke key support levels, triggering stop-loss orders.
Q: What is the new 52-week low for Kalyan Jewellers?
A: The stock hit a low of ₹390 on January 21, 2026.
Q: Is Kalyan Jewellers a good buy now?
A: From a fundamental perspective, brokerages like Motilal Oswal see long-term value with a target of ₹650. However, technical charts show a strong downtrend. Investors should wait for the stock to show signs of stability or wait for the Q3 results on February 6.
Q: How much has Kalyan Jewellers stock fallen in total?
A: The stock has fallen over 25% in the last nine consecutive trading sessions.
Q: What are the support levels for Kalyan Jewellers?
A: Immediate support is seen at ₹390–₹380. If this breaks, the next support could be near ₹360 or lower.
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