Recent Price Movement and Market Context
The stock closed at ₹35.45 on 6 Jan 2026, down 2.61% from the previous close of ₹36.40. Intraday trading saw a high of ₹36.20 and a low of ₹35.19, reflecting a modest range amid subdued momentum. The 52-week high stands at ₹51.49, while the low is ₹21.38, indicating significant volatility over the past year.
Comparatively, Coffee Day Enterprises has outperformed the Sensex over the last year, delivering a 34.89% return against the benchmark’s 7.85%. However, over longer horizons such as three and ten years, the stock has underperformed markedly, with a 26.07% decline over three years and a steep 87.49% drop over ten years, contrasting with Sensex gains of 41.57% and 234.01% respectively.
Technical Trend Shift: From Mildly Bullish to Sideways
Technical analysis reveals a nuanced picture. The overall trend has shifted from mildly bullish to sideways, signalling a loss of upward momentum. This transition is critical as it suggests the stock may be consolidating or preparing for a directional breakout, but the current signals do not favour a clear bullish continuation.
The daily moving averages remain mildly bullish, indicating some short-term support around current price levels. However, weekly and monthly indicators present a more cautious outlook.
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator shows a bearish signal on the weekly chart, reflecting weakening momentum in the near term. Conversely, the monthly MACD remains mildly bullish, suggesting that longer-term momentum has not fully deteriorated. This divergence between weekly and monthly MACD readings highlights the stock’s current indecision phase.
The Know Sure Thing (KST) indicator aligns with this mixed view: bearish on the weekly timeframe but mildly bullish monthly. Such conflicting signals often precede a period of consolidation or increased volatility.
Relative Strength Index (RSI) and Bollinger Bands
The RSI readings on both weekly and monthly charts currently provide no definitive signal, hovering in neutral zones without indicating overbought or oversold conditions. This neutrality supports the sideways trend assessment, as the stock lacks strong directional momentum.
Bollinger Bands on both weekly and monthly charts are bearish, suggesting that price volatility is skewed towards downside risk. The bands’ contraction may also indicate a forthcoming breakout, but the direction remains uncertain.
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On-Balance Volume (OBV) and Dow Theory Assessment
Volume-based indicators provide further insight. The OBV shows no clear trend on the weekly chart but is mildly bearish on the monthly timeframe, indicating that volume flow is not strongly supporting price advances. This volume weakness may limit the stock’s ability to sustain rallies in the near term.
Dow Theory readings are mildly bullish on the weekly scale but show no trend monthly, reinforcing the mixed technical landscape. The absence of a strong monthly trend suggests that longer-term directional conviction remains elusive.
Mojo Score and Market Capitalisation Grade
Coffee Day Enterprises currently holds a Mojo Score of 28.0, categorised as a Strong Sell, an upgrade from the previous Sell rating as of 5 Jan 2026. This downgrade reflects deteriorating technical and fundamental factors. The company’s market capitalisation grade is 4, indicating a relatively modest size within its sector.
Such a low Mojo Score signals caution for investors, especially given the stock’s recent 1-week return of -5.37% versus the Sensex’s positive 0.88%. The stock’s year-to-date return is also negative at -2.53%, underperforming the benchmark’s 0.26% gain.
Investment Implications and Sector Context
Operating within the leisure services sector, Coffee Day Enterprises faces sector-specific challenges including discretionary spending fluctuations and competitive pressures. The mixed technical signals suggest that investors should monitor key support levels near ₹35 and resistance around ₹36.50 closely.
Given the sideways momentum and bearish weekly MACD, a break below recent lows could trigger further downside, while a sustained move above daily moving averages might revive short-term bullishness. However, the overall Strong Sell Mojo Grade advises prudence.
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Summary and Outlook
Coffee Day Enterprises Ltd’s technical landscape is characterised by a transition from mild bullishness to a sideways trend, with conflicting signals across key indicators such as MACD, RSI, Bollinger Bands, and volume metrics. The weekly bearish MACD and Bollinger Bands, combined with a neutral RSI, suggest limited near-term upside momentum.
While the monthly indicators retain some mild bullishness, the overall Strong Sell Mojo Grade and recent price declines counsel caution. Investors should watch for confirmation of trend direction through price action around moving averages and volume changes.
Longer-term investors may find the stock’s one-year outperformance encouraging, but the weak three- and ten-year returns highlight structural challenges. In the current environment, a disciplined approach with attention to technical signals and sector dynamics is advisable.
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