Current Price and Market Context
The stock closed at ₹31.06 on 2 Feb 2026, marking a 2.20% increase from the previous close of ₹30.39. The intraday range was relatively narrow, with a low of ₹29.81 and a high of ₹31.08. This price remains significantly below its 52-week high of ₹51.49, while comfortably above the 52-week low of ₹21.38, indicating a wide trading band over the past year.
Technical Trend Overview
MarketsMOJO’s technical trend assessment has shifted from bearish to mildly bearish, signalling a tentative improvement but still reflecting underlying weakness. The daily moving averages remain bearish, suggesting that short-term momentum is yet to turn decisively positive. This is corroborated by the weekly MACD, which remains bearish, while the monthly MACD shows a mildly bullish stance, hinting at potential longer-term recovery.
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, indicating a lack of strong momentum either way. Bollinger Bands on weekly and monthly timeframes are mildly bearish, suggesting the stock price is trading near the lower band, which often signals oversold conditions but also persistent downward pressure.
Momentum Oscillators and Volume Analysis
The Know Sure Thing (KST) oscillator presents a mixed picture: bearish on the weekly scale but bullish monthly, reinforcing the notion of short-term weakness against a backdrop of potential longer-term strength. Dow Theory assessments align with this, showing mildly bearish trends on both weekly and monthly charts.
On-Balance Volume (OBV) indicators show no discernible trend on either weekly or monthly timeframes, suggesting that volume is not confirming price movements and that investor conviction remains uncertain.
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Comparative Returns and Market Performance
Examining Coffee Day Enterprises’ returns relative to the Sensex reveals a challenging performance over recent periods. The stock has underperformed the benchmark index significantly over the past month and year-to-date, with returns of -17.26% and -14.60% respectively, compared to Sensex declines of -4.67% and -5.28%. This underperformance highlights the stock’s vulnerability amid broader market corrections.
However, over a one-year horizon, the stock has outperformed the Sensex, delivering a 19.14% gain versus the benchmark’s 5.16%. This suggests episodic recovery phases, though longer-term trends remain concerning. Over three and five years, Coffee Day Enterprises has lagged the Sensex considerably, with a -24.24% return over three years against Sensex’s 35.67%, and a modest 19.23% over five years compared to Sensex’s robust 74.40%.
Most strikingly, the ten-year return for Coffee Day Enterprises stands at a severe -88.17%, in stark contrast to the Sensex’s 224.57% gain, underscoring the company’s prolonged struggles within the leisure services sector.
Mojo Score and Ratings Update
MarketsMOJO has downgraded Coffee Day Enterprises Ltd’s Mojo Grade from Sell to Strong Sell as of 5 Jan 2026, reflecting deteriorating fundamentals and technical outlook. The current Mojo Score stands at a low 23.0, signalling weak overall quality and momentum. The Market Cap Grade is rated 4, indicating a relatively small market capitalisation within its sector.
Technical Indicator Deep Dive
The daily moving averages remain bearish, with the stock trading below key averages such as the 50-day and 200-day moving averages, which typically act as resistance levels. This bearish alignment suggests that short-term traders remain cautious, and any rallies may face selling pressure near these averages.
The weekly MACD’s bearish stance is characterised by the MACD line remaining below the signal line, indicating downward momentum. Conversely, the monthly MACD’s mildly bullish signal suggests that longer-term momentum may be stabilising, but this is yet to translate into sustained price appreciation.
Bollinger Bands’ mild bearishness on weekly and monthly charts indicates the stock price is closer to the lower band, often a sign of oversold conditions but also signalling persistent downward volatility. This could imply potential for a technical bounce, but confirmation from other indicators is necessary.
The KST oscillator’s divergence between weekly bearishness and monthly bullishness further emphasises the mixed signals, with short-term momentum lagging but longer-term trends possibly improving. Investors should watch for a weekly KST crossover above its signal line as a potential early sign of momentum shift.
Volume and Market Sentiment
On-Balance Volume (OBV) readings show no clear trend, indicating that volume is not supporting either a strong rally or sell-off. This lack of volume confirmation often precedes periods of consolidation or indecision among market participants.
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Outlook and Investor Considerations
While the technical indicators present a mixed picture, the prevailing sentiment remains cautious. The upgrade to Strong Sell by MarketsMOJO reflects concerns over the company’s fundamentals and technical momentum. The stock’s inability to sustain rallies above key moving averages and the lack of volume confirmation suggest that investors should remain vigilant.
Long-term investors may find some solace in the mildly bullish monthly MACD and KST signals, which hint at a potential stabilisation phase. However, the significant underperformance relative to the Sensex over multiple timeframes, especially the ten-year horizon, underscores the challenges facing Coffee Day Enterprises Ltd within the leisure services sector.
Traders and investors should closely monitor the weekly MACD and KST indicators for signs of a sustained momentum shift, alongside volume trends that could confirm any breakout or breakdown. Until then, the technical landscape suggests a predominantly bearish to mildly bearish environment, warranting caution.
Summary
Coffee Day Enterprises Ltd’s technical parameters reveal a stock caught between bearish short-term momentum and tentative longer-term bullish signals. The recent upgrade to Strong Sell by MarketsMOJO, combined with a low Mojo Score of 23.0, reflects ongoing concerns. Investors should weigh the mixed technical signals carefully, considering the stock’s historical underperformance and current market conditions before making investment decisions.
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