Stocks of Gold retailers like – PC Jeweller, RBZ Jewellers, Tribhovandas Bhimji Zaveri (TBZ) and Motisons Jewellers have soared in the range of 27-39 per cent in the last one month, post the Union Budget 2024. Among others, Titan has rallied 7 per cent; while Kalyan Jewellers and Thangamayil Jewellery rose 4 per cent and 2 per cent, respectively.
On the MCX, Indian traded Gold futures tumbled from levels of Rs 72,718 on July 22, 2024 (day prior to the Union Budget) to a low of Rs 67,400 on July 25, 2024 – down 7.3 per cent in just three trading sessions.
The sharp drop in physical Gold prices came as a sigh of relief to both for Gold buyers and Gold retailers. Analysts believe that retail sales would go up post the customs duty cut. Hence, stock prices of Gold jewellery makers gained in the following period.
However, post July 25, Gold prices have ascended in international market, thereby seeing a corresponding increase in the Indian Gold market too. International Gold prices were seen quoting at record high levels of $2,550 per ounce as bets of a September interest rate cut in the US rose.
Correspondingly, the MCX Gold prices have rallied back to Rs 71,700 levels – thus in a way, undoing the benefit of decline in prices post the Budget customs duty cut.
Given this background, what should be your strategy towards stocks of Gold retailers – Should you Buy at present levels or wait for dips? Here’s what the charts suggest.
Titan
Last Price: Rs 3,465
Upside Potential: 8.8%
Support: Rs 3,185
Resistance: Rs 3,508; Rs 3,640
Titan has been a relative underperformer among peers in the post Budget rally. On the charts, the stock is seen struggling to regain strength following the break of its 200-DMA (Daily Moving Average) support in May 2024.
For now, the weekly chart suggests, that the upside for the stock may be capped around Rs 3,770 levels; with interim resistance seen at Rs 3,640. On the downside, the monthly chart shows presence of strong support around Rs 3,185 and Rs 3,020 range. Hence, the stock may gyrate in the broad range of Rs 3,020 – Rs 3,770 until a clear directional move takes place.
Senco Gold
Last Price: Rs 1,109
Upside Potential: 12.3%
Support: Rs 1,015
Resistance: Rs 1,155
Senco Gold is seen trading around its bullish pivot on the daily scale, which stands at Rs 1,110. The stock will need to sustain above the same for the bias to remain favourable. On the upside, the stock needs to break and trade consistently above Rs 1,155 levels for gaining fresh upside momentum. The stock can potentially target Rs 1,245 on the higher side.
PC Jeweller
Last Price: Rs 98
Upside Potential: 27.5%
Support: Rs 88.50; Rs 86
Resistance: Rs 102.50; Rs 105.50
PC Jeweller stock is seen trading with a positive bias on the daily scale; post the breakout in early July. The stock is consistently seen making higher-highs and higher lows. At current levels, the chart shows presence of near resistance for the stock at Rs 102.50 and Rs 105.50 levels; above which the stock can potentially soar to Rs 125 levels.
Kalyan Jewellers
Last Price: Rs 550
Upside Potential: 14.5%
Support: Rs 525
Resistance: Rs 580; Rs 590
Tribhovandas Bhimji Zaveri (TBZ)
Last Price: Rs 182
Upside Potential: 18.1%
Support: Rs 175; Rs 168
Resistance: Rs 196
TBZ stock is seen making higher-highs and higher-lows on the daily chart. The stock at present is seen trending along the higher-end of the Bollinger Bands on the daily scale.
First Published: Aug 20 2024 | 10:00 AM IST