Coffee Day Enterprises Ltd Faces Bearish Momentum Amid Technical Downturn

Technical Trend Shift and Price Action

Recent analysis reveals that Coffee Day Enterprises Ltd’s technical trend has transitioned from a sideways pattern to a bearish stance. The stock closed at ₹34.01, down from the previous close of ₹35.02, marking a daily decline of 2.88%. Intraday volatility saw the price fluctuate between ₹33.34 and ₹35.29, underscoring the prevailing uncertainty among traders.

Over the past week, the stock has underperformed the broader market, with a one-week return of -6.57% compared to the Sensex’s -2.55%. However, the one-month return stands at a positive 7.12%, outperforming the Sensex’s -1.29% over the same period. Year-to-date, the stock remains down by 6.49%, lagging behind the Sensex’s 1.93% decline. Longer-term returns paint a mixed picture, with a one-year gain of 11.88% versus the Sensex’s 7.67%, but a three-year loss of 28.10% compared to the Sensex’s robust 37.58% gain.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced view. On the weekly chart, the MACD remains bearish, signalling downward momentum, while the monthly MACD is mildly bullish, suggesting some underlying strength over a longer horizon. This divergence indicates that while short-term momentum is weak, there may be potential for recovery if longer-term trends improve.

The Know Sure Thing (KST) indicator aligns with this mixed outlook. Weekly readings are bearish, reinforcing the short-term negative momentum, whereas monthly KST readings are mildly bullish, echoing the MACD’s longer-term optimism.

Relative Strength Index and Bollinger Bands

The Relative Strength Index (RSI) offers little directional guidance at present, with both weekly and monthly RSI readings showing no clear signal. This neutrality suggests that the stock is neither overbought nor oversold, leaving room for either a rebound or further decline depending on market catalysts.

Bollinger Bands, however, are firmly bearish on both weekly and monthly timeframes. The stock price is trading near the lower band, indicating increased volatility and a potential continuation of the downward trend. This technical setup often signals that the stock is under selling pressure, which may persist in the near term.

Moving Averages and Volume Trends

Daily moving averages confirm the bearish momentum, with the stock trading below its key short-term and medium-term averages. This alignment typically signals that sellers are in control and that resistance levels may be difficult to breach without significant positive news or market support.

Volume analysis via the On-Balance Volume (OBV) indicator shows a mildly bearish trend on both weekly and monthly charts. This suggests that selling pressure is accompanied by volume, reinforcing the negative price action and indicating that the downtrend is supported by investor conviction rather than low liquidity.

Dow Theory and Market Context

According to Dow Theory, the weekly trend for Coffee Day Enterprises Ltd is mildly bullish, indicating some resilience in the short term. However, the monthly trend shows no clear directional bias, reflecting the stock’s struggle to establish a sustained trend over longer periods. This ambiguity is consistent with the mixed signals from other technical indicators.

Comparing the company’s performance with the broader market, Coffee Day Enterprises Ltd has lagged significantly over the past decade, with a 10-year return of -87.55% against the Sensex’s impressive 235.19% gain. This stark contrast highlights the challenges the company faces in regaining investor confidence and market share within the Leisure Services sector.

Mojo Score and Ratings Update

MarketsMOJO’s latest assessment downgraded Coffee Day Enterprises Ltd from a ‘Sell’ to a ‘Strong Sell’ rating on 5 January 2026, reflecting deteriorating fundamentals and technical outlook. The company’s Mojo Score stands at a low 28.0, signalling weak overall quality and momentum. The Market Cap Grade remains at 4, indicating a relatively small market capitalisation within its sector.

This downgrade aligns with the technical indicators’ bearish signals and the stock’s recent underperformance. Investors should exercise caution and consider the risks associated with holding or acquiring shares at current levels.

Investment Implications and Outlook

Given the prevailing technical landscape, Coffee Day Enterprises Ltd appears to be in a consolidation phase with a bearish bias. The alignment of daily moving averages below price, bearish weekly MACD and KST, and the pressure indicated by Bollinger Bands suggest that the stock may face further downside risks in the near term.

However, the mildly bullish monthly MACD and KST, coupled with neutral RSI readings, imply that a longer-term recovery is not out of the question if the company can improve its operational performance or if sector conditions turn favourable. Investors should monitor key support levels near the 52-week low of ₹21.38 and resistance around the recent highs near ₹35.29.

Volume trends reinforce the bearish narrative, with OBV indicating that selling pressure is supported by meaningful volume. This suggests that any rallies may be met with resistance unless accompanied by strong fundamental catalysts.

In summary, while short-term technical indicators caution against aggressive buying, the longer-term signals warrant a watchful approach. Investors with a higher risk tolerance may consider selective accumulation on dips, but the overall recommendation remains cautious given the current ‘Strong Sell’ rating and weak Mojo Score.

Sector and Industry Context

Coffee Day Enterprises Ltd operates within the Leisure Services sector, which has exhibited mixed performance amid evolving consumer preferences and economic conditions. The company’s relative underperformance compared to the Sensex and sector peers highlights the need for strategic initiatives to regain competitiveness.

Market participants should also consider broader macroeconomic factors impacting discretionary spending and leisure activities, which could influence the company’s revenue growth and profitability in the coming quarters.

Summary of Key Technical Metrics

• Current Price: ₹34.01 (Previous Close: ₹35.02)


• 52-Week High / Low: ₹51.49 / ₹21.38


• Daily Moving Averages: Bearish


• Weekly MACD: Bearish; Monthly MACD: Mildly Bullish


• Weekly KST: Bearish; Monthly KST: Mildly Bullish


• RSI (Weekly & Monthly): No Signal


• Bollinger Bands (Weekly & Monthly): Bearish


• OBV (Weekly & Monthly): Mildly Bearish


• Mojo Score: 28.0 (Strong Sell, downgraded from Sell on 05 Jan 2026)


• Market Cap Grade: 4

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