Jewellery stocks shine ahead of expected export policy tweak

Indian Jewellery sector was seen glittering exceptionally in an otherwise dull markets. Barring Rajesh Exports, the largest jewellery stock by market capitalisation, most other stocks surged in intraday trade on Monday, November 27, though few witnessed profit-bookings later. It was not just on Monday, but the jewellery stocks have been performing exuberantly so far in November 2017 ranging 13-48 per cent. This surge was ahead of government’s package to boost employment and exports in this sector as the sector was badly hit by demonetisation and GST roll out.

Technically the second largest stock, P C Jeweller is trailing at its all-time high levels and considering the weekly time frame, the stock has given a kind of Pennant pattern breakout at 395 levels with good volumes and momentum. The third largest company Vaibhav Global had given a Cup and handle pattern breakout at 570 levels at the end of October and thereby surged for 3 consecutive weeks. The stock has been consolidating from last three weeks as if to make a Pennant pattern. The fourth largest company Gitanjali Gems has gained as much as 42 per cent in the previous week. The stock has been in news since the mid of November 2017 as it is likely to file for an IPO for its Nakshatra subsidiary. Even though the stocks have surged, there is still room left for some more upside as the stocks have yet not given signs of reversal.