Coffee Day Enterprises Ltd Technical Momentum Shifts Amid Mixed Market Signals

Technical Trend Overview and Price Movement

The stock closed at ₹31.25 on 25 Feb 2026, down 1.30% from the previous close of ₹31.66. Intraday, it fluctuated between ₹31.15 and ₹31.96, remaining well below its 52-week high of ₹51.49 but comfortably above the 52-week low of ₹21.38. This price action reflects ongoing volatility amid a challenging market environment for the Leisure Services sector.

Over the past week, Coffee Day Enterprises has underperformed the broader market, with a 7.05% decline compared to the Sensex’s 1.47% drop. Year-to-date, the stock is down 14.08%, significantly lagging the Sensex’s 3.51% loss. However, the one-year return remains robust at 46.16%, outperforming the Sensex’s 10.44%, indicating some resilience over a longer horizon despite recent weakness.

MACD and Momentum Indicators Signal Mixed Sentiment

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains bearish, suggesting that short-term momentum is still negative. Conversely, the monthly MACD has turned mildly bullish, hinting at a potential longer-term recovery or at least a pause in the downtrend. This divergence between weekly and monthly MACD readings suggests that while immediate price action is weak, the broader trend may be stabilising.

The Relative Strength Index (RSI) offers no clear signals on either the weekly or monthly charts, indicating neither overbought nor oversold conditions. This neutral RSI reading implies that the stock is not currently exhibiting extreme momentum in either direction, which could precede a directional move once other indicators align.

Moving Averages and Bollinger Bands Confirm Bearish Bias

Daily moving averages remain bearish, with the stock trading below key averages such as the 50-day and 200-day moving averages. This positioning typically signals downward pressure and a lack of buying conviction in the short term. Bollinger Bands reinforce this view: weekly bands are bearish, indicating price compression towards the lower band, while monthly bands are mildly bearish, suggesting some easing of downward pressure but no clear reversal.

Other Technical Indicators: KST, OBV, and Dow Theory

The Know Sure Thing (KST) indicator presents a split view: weekly readings remain bearish, while monthly readings have turned bullish. This suggests that while short-term momentum is weak, there may be underlying strength building over a longer timeframe. The On-Balance Volume (OBV) indicator also reflects this duality, showing mild bullishness on the weekly chart but mild bearishness monthly, indicating mixed investor sentiment regarding volume trends.

Dow Theory analysis reveals no clear trend on the weekly scale, but a mildly bearish stance on the monthly scale. This lack of a definitive trend further emphasises the stock’s current consolidation phase, where neither bulls nor bears have established dominance.

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 company’s Mojo Score stands at 17.0, signalling weak overall quality and momentum. The Market Cap Grade is 4, indicating a relatively small market capitalisation compared to peers, which may contribute to higher volatility and lower liquidity.

Given these ratings, investors should exercise caution. The downgrade to Strong Sell aligns with the bearish technical signals and recent price underperformance, suggesting limited near-term upside potential.

Long-Term Performance and Sector Context

Over a 10-year horizon, Coffee Day Enterprises has delivered a negative return of 86.12%, starkly contrasting with the Sensex’s 256.13% gain. This long-term underperformance highlights structural challenges within the company and sector. Over five years, the stock has gained 19.96%, but this still trails the Sensex’s 61.92% return, underscoring persistent relative weakness.

Within the Leisure Services sector, Coffee Day Enterprises faces competitive pressures and evolving consumer preferences, which may be reflected in its technical and fundamental struggles. Investors should weigh these sector dynamics alongside technical signals when considering exposure.

Investor Takeaway and Outlook

In summary, Coffee Day Enterprises Ltd is navigating a complex technical landscape. The shift from a strongly bearish to a mildly bearish trend suggests some easing of downward momentum, but key indicators such as daily moving averages and weekly MACD remain negative. The absence of clear RSI signals and mixed readings from KST and OBV imply that the stock is in a consolidation phase, awaiting a catalyst for a decisive move.

Investors should remain cautious given the Strong Sell rating and recent price underperformance relative to the Sensex and sector peers. The stock’s long-term underperformance and modest market capitalisation add to the risk profile. However, the mildly bullish monthly MACD and KST readings offer a glimmer of potential recovery if broader market conditions improve.

For those considering exposure, it is prudent to monitor technical indicators closely and watch for confirmation of trend reversals before committing capital. Diversification within the Leisure Services sector and comparison with stronger peers may provide better risk-adjusted opportunities.

Conclusion

Coffee Day Enterprises Ltd’s recent technical parameter changes highlight a tentative shift in momentum amid persistent bearish pressures. While some monthly indicators suggest potential stabilisation, the overall technical and fundamental outlook remains cautious. Investors should weigh these factors carefully, balancing short-term volatility against longer-term sector challenges and company-specific risks.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →