Worst hit diamond stocks sparkle in today's trade

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Worst hit diamond stocks sparkle in today's trade

Despite some diamond stocks hitting the upper circuit today, analysts believe that Titan Industries is a better pick in this sector.

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Despite some diamond stocks hitting the upper circuit today, analysts believe that Titan Industries is a better pick in this sector.

On June 21, stocks like Goldiam International , Rajesh Exports, and Zodiac-JRD-MKJ have hit upper circuit. Gitanjali Gems and Su-Raj Diamonds also spurted up 5.33% and 6.96% each respectively.

While Goldiam International closed at Rs 110.80, up Rs 5.25, or 4.97%, Rajesh Exports closed at Rs 172.25, up Rs 8.20, or 5%. 

Another diamond stock Zodiac-JRD-MKJ closed at Rs 31.80, up Rs 1.50, or 4.95%.

Gitanjali Gems closed at Rs 159.15, up Rs 8.05, or 5.33%. Recently listed Su-Raj Diamonds closed at Rs 50.70, up Rs 3.30, or 6.96%.

Interestingly, these stocks had lost more than 24% during the May 11 to June 21 period. This one-day gain, however, doesn't seem to have enthused analysts. The Sensex, however, performed somewhat better than these stocks with a loss of 19% during the same period.

Technical Analyst, Vijay Bhambwani said "Between Rs 125 and 135, a lot of accumulation has taken place in Gitanjali Gems. In the absolute short term, Rs 165 remains the level to watch out for. If it does not really fall below Rs 165 with heavy volumes to test this level, it could scale upto Rs 180-185 where profit taking would come in. Short term traders might venture into this, should it close above the Rs 160-165 levels with heavier volumes."

Further, he added, "Over a longer period of time qualitatively speaking at least on the chart, where relative strength comparison is concerned, Titan Industries' score is better."

Ashish Kapoor, CEO of Investshoppe told that "Gitanjali Gems is a nice counter, they are expanding their retail presence and they have lot of brands, which they are building up and the whole space is likely to do well. The retail jewellery, the way the consumer income is going up, over next couple of years this is a sector, which is likely to grow. But in this space also I would prefer Titan Industries as it has much better presence and much better brands than Gitanjali Gems. If somebody wants to go in branded jewellery segment, then Titan Industries should be the first choice."

By Ritesh Presswala