BlueStone Jewellery shares soar 7%. Should you buy at current levels or avoid?

BlueStone Jewellery and Lifestyle shares surged nearly 7% on Wednesday, extending their one-month rally to around 50% after the company's strong Q1 earnings boosted investor sentiment. However, technical indicators suggest investors should keep an eye on key support and resistance levels following the sharp run-up.

Earlier this month, the jewellery retailer reported a net profit of Rs 14 crore for the April-June quarter of FY27, compared with a net loss of Rs 21 crore in the corresponding quarter last year.

The company said its standalone revenue rose nearly 49% year-on-year (YoY) to Rs 733 crore during the quarter. Same-store sales growth stood at 39% YoY, while standalone EBITDA jumped 134.6% YoY to Rs 55 crore. BlueStone also added 12 stores in Q1 FY27, taking its total store count to 352 across 139 cities.

What do technical charts indicate for BlueStone's share price?

BlueStone's sharp rally following its quarterly results was accompanied by a significant increase in trading volumes, indicating strong buying interest, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities. He added that after the sharp upmove, the stock has witnessed a healthy breather over the past three trading sessions.

Technically, the stock continues to trade well above its key short- and long-term moving averages, reflecting a strong underlying trend, Shah said. He added that the Average Directional Index (ADX) is rising, signalling strengthening bullish momentum.

"On the weekly timeframe, the MACD line remains above the zero line and continues to trend higher, while the expanding green histogram bars further reinforce the positive bias," he said.

According to Shah, the stock has immediate support in the Rs 740-730 zone, and the bullish outlook is expected to remain intact as long as it sustains above this range. On the upside, the immediate resistance is placed at Rs 840-850. "A decisive breakout above this resistance could pave the way for a continuation of the uptrend," he added.

Also read |Bluestone Jewellery shares rocket 36% in just three days after Q1 results. Can the momentum sustain?

BlueStone share price

BlueStone shares had a muted stock market debut in August last year, listing at Rs 510 apiece on the NSE, nearly 2% below their issue price.

The company announced its Q1 FY27 results on July 20, following which the stock surged 45% in just three trading sessions to hit a lifetime high of Rs 869.50. It was trading at Rs 807.90 on Wednesday.

Overall, the stock has gained 2% over the past week and around 50% in the last month. It is up more than 65% in 2026 so far and has delivered a 58% return since its listing.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)