Coffee Day Enterprises Ltd Shows Signs of Technical Momentum Shift Amid Mixed Indicators

Price Momentum and Recent Performance

The stock closed at ₹37.46 on 30 Dec 2025, up from the previous close of ₹35.23, marking a robust daily gain of 6.33%. Intraday, the price fluctuated between ₹36.12 and ₹38.99, indicating increased volatility and buying pressure. Over the past week, Coffee Day Enterprises outperformed the Sensex significantly, delivering an 8.27% return compared to the benchmark’s decline of 1.02%. The one-month return also remained positive at 3.42%, while the Sensex fell by 1.18% in the same period.

Year-to-date (YTD), the stock has surged an impressive 64.95%, vastly outperforming the Sensex’s 8.39% gain. Over the last year, the stock’s return stands at 56.74%, again well ahead of the Sensex’s 7.62%. However, longer-term performance remains a concern, with a three-year return of -21.96% versus the Sensex’s 38.54%, and a ten-year return of -86.85% compared to the Sensex’s 224.76%. This disparity highlights the company’s recent recovery phase following a prolonged period of underperformance.

Technical Indicator Analysis

The technical landscape for Coffee Day Enterprises is nuanced, with several indicators presenting mixed signals across different timeframes. The overall technical trend has shifted from mildly bearish to mildly bullish, signalling a tentative improvement in market sentiment.

The Moving Average Convergence Divergence (MACD) indicator shows a bearish signal on the weekly chart but turns mildly bullish on the monthly chart. This suggests that while short-term momentum remains cautious, the longer-term trend is beginning to gain positive traction. The Relative Strength Index (RSI) remains neutral with no clear signal on both weekly and monthly charts, indicating the stock is neither overbought nor oversold at present.

Bollinger Bands reveal a mildly bearish stance on the weekly timeframe but a bullish outlook on the monthly scale. This divergence points to short-term price consolidation with potential for upward breakout in the medium term. The daily moving averages are mildly bullish, supporting the recent price appreciation and signalling that buyers are gaining control in the near term.

Additional Technical Measures

The Know Sure Thing (KST) indicator is bearish on the weekly chart but mildly bullish on the monthly chart, mirroring the MACD’s mixed signals. Dow Theory analysis shows a mildly bullish trend on the weekly timeframe but a mildly bearish trend on the monthly, reflecting some uncertainty in the broader market context. On-Balance Volume (OBV) is neutral on the weekly chart but mildly bearish on the monthly, suggesting that volume trends have yet to fully confirm the price momentum shift.

Market Capitalisation and Mojo Score

Coffee Day Enterprises holds a market cap grade of 4, reflecting its mid-tier capitalisation within the Leisure Services sector. The company’s Mojo Score currently stands at 38.0, categorised as a Sell rating. This represents an upgrade from a previous Strong Sell grade dated 29 Dec 2025, signalling a modest improvement in the company’s technical and fundamental outlook. The upgrade suggests that while risks remain, the stock is showing signs of stabilisation and potential recovery.

Sector and Industry Context

Operating within the Leisure Services sector, Coffee Day Enterprises faces competitive pressures but also benefits from a recovering consumer discretionary environment. The sector has seen mixed performance recently, with some companies rebounding strongly post-pandemic while others continue to struggle with cost inflation and changing consumer preferences. Coffee Day’s recent technical momentum shift may reflect improving operational conditions and investor confidence in the company’s turnaround strategy.

Technical Outlook and Investor Considerations

The mildly bullish technical trend, supported by daily moving averages and monthly MACD, suggests that the stock could continue to gain in the near term. However, the presence of bearish signals on weekly MACD, KST, and OBV indicators advises caution. Investors should monitor whether the stock can sustain above key moving averages and break through resistance levels near the recent high of ₹38.99.

Given the mixed technical signals, a cautious approach is warranted. The stock’s strong short-term returns relative to the Sensex are encouraging, but the longer-term negative returns highlight the importance of fundamental improvements to support sustained gains. The neutral RSI readings indicate that the stock is not currently overextended, leaving room for further upside if positive catalysts emerge.

Conclusion

Coffee Day Enterprises Ltd’s recent technical parameter changes indicate a tentative shift towards a more positive momentum, supported by daily moving averages and monthly MACD improvements. The stock’s strong short-term price performance relative to the Sensex reinforces this view. However, mixed signals from weekly indicators and longer-term negative returns counsel prudence.

Investors should closely watch the stock’s ability to maintain its upward trajectory and confirm bullish signals across multiple technical indicators before committing significant capital. The upgrade from Strong Sell to Sell on the Mojo Grade reflects a cautious optimism but also underscores the need for continued fundamental progress to sustain a durable recovery.

Overall, Coffee Day Enterprises presents an intriguing case of a leisure services company emerging from a challenging period with improving technical momentum, yet still facing hurdles that require careful analysis and monitoring.

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