Devyani International Ltd Technical Momentum Shifts Amid Bearish Sentiment

Technical Trend Overview

Recent analysis reveals that Devyani International Ltd's technical trend has transitioned from bearish to mildly bearish. This nuanced change is evident across multiple timeframes and indicators. The Moving Average Convergence Divergence (MACD) remains bearish on a weekly basis but has softened to mildly bearish on the monthly chart, signalling a potential easing of downward momentum. Meanwhile, the Relative Strength Index (RSI) shows no clear signal on either weekly or monthly charts, indicating a lack of strong directional momentum in the short to medium term.

Bollinger Bands, which measure volatility and price levels relative to moving averages, also reflect a mildly bearish stance on both weekly and monthly timeframes. Daily moving averages align with this view, suggesting that while the stock is not in freefall, it is yet to establish a firm bullish trend. The Know Sure Thing (KST) indicator remains bearish across weekly and monthly charts, reinforcing the cautious technical outlook.

Interestingly, the On-Balance Volume (OBV) indicator diverges from price trends, showing a bullish signal on the monthly chart. This suggests that despite price weakness, accumulation by investors may be occurring, potentially laying groundwork for a future recovery. However, Dow Theory analysis indicates no clear trend on weekly or monthly scales, underscoring the current market indecision surrounding the stock.

Price Action and Volatility

Devyani International Ltd closed at ₹131.95 on 10 Feb 2026, up from the previous close of ₹130.35. The stock traded within a range of ₹129.00 to ₹133.30 during the day, reflecting moderate intraday volatility. Its 52-week high stands at ₹191.20, while the 52-week low is ₹109.80, highlighting a significant range of price movement over the past year.

Despite the recent uptick, the stock’s year-to-date (YTD) return is negative at -10.84%, underperforming the Sensex’s modest decline of -1.36% over the same period. Over the past year, Devyani International has suffered a steep decline of -26.74%, contrasting sharply with the Sensex’s 7.97% gain. Longer-term returns also paint a challenging picture, with a three-year loss of -17.14% against the Sensex’s robust 38.25% appreciation.

Mojo Score and Market Capitalisation Insights

Devyani International’s MarketsMOJO Mojo Score currently stands at 23.0, categorising it as a Strong Sell. This represents a downgrade from its previous Sell grade on 3 Nov 2025, signalling deteriorating technical and fundamental conditions. The company’s market capitalisation grade is rated 3, indicating a mid-tier market cap within its sector.

The downgrade reflects a combination of weak price momentum, subdued volume trends, and ongoing sector headwinds in Leisure Services. Investors should note that the stock’s technical indicators have not yet signalled a definitive reversal, and the prevailing mildly bearish trend suggests caution.

Comparative Performance Against Sensex

When benchmarked against the broader market, Devyani International’s performance has been notably weaker. The stock’s one-week return of 13.8% significantly outpaced the Sensex’s 2.94%, indicating a short-term bounce. However, this rally has not sustained, as evidenced by the one-month return of -0.83% versus the Sensex’s 0.59% gain.

Year-to-date and longer-term returns remain deeply negative, underscoring the stock’s struggle to regain investor confidence. The five-year and ten-year returns are not available for Devyani International, but the Sensex’s 63.78% and 249.97% gains respectively highlight the broader market’s outperformance.

Technical Indicators in Detail

The MACD’s weekly bearish signal suggests that downward momentum remains intact in the near term, although the monthly mildly bearish reading hints at a potential easing. The RSI’s neutral stance on both weekly and monthly charts indicates the stock is neither overbought nor oversold, which may imply consolidation rather than a strong directional move.

Bollinger Bands’ mildly bearish readings reflect moderate price pressure near the lower band, signalling potential volatility but no decisive breakout. Daily moving averages reinforce this cautious outlook, with the stock trading slightly below key averages, suggesting resistance to upward price movement.

The KST indicator’s bearish readings on weekly and monthly charts further confirm the lack of positive momentum. Conversely, the OBV’s monthly bullish signal is a noteworthy divergence, implying that volume trends may be supporting price stability or accumulation despite the prevailing negative price action.

Investor Takeaway and Outlook

Devyani International Ltd’s technical parameters suggest a cautious stance for investors. While the recent mild improvement in bearishness may hint at stabilisation, the absence of strong bullish signals across key indicators advises prudence. The divergence between price weakness and bullish volume trends could indicate that the stock is attempting to find a base, but confirmation through sustained price appreciation is necessary before a positive outlook can be established.

Given the company’s underperformance relative to the Sensex and the Leisure Services sector’s challenges, investors should weigh the risks carefully. The downgrade to a Strong Sell grade by MarketsMOJO reflects these concerns, signalling that the stock is not currently favoured for accumulation in portfolios seeking growth or stability.

Technical analysts will be watching for a breakout above daily moving averages and a shift in MACD and KST indicators towards bullish territory as potential early signs of recovery. Until then, the mildly bearish trend and mixed signals warrant a defensive approach.

Summary of Key Technical Metrics:

• Current Price: ₹131.95 (10 Feb 2026)
• Day Change: +1.23%
• 52-Week Range: ₹109.80 - ₹191.20
• MACD: Weekly Bearish, Monthly Mildly Bearish
• RSI: No Signal (Weekly & Monthly)
• Bollinger Bands: Mildly Bearish (Weekly & Monthly)
• Moving Averages: Daily Mildly Bearish
• KST: Bearish (Weekly & Monthly)
• OBV: Bullish (Monthly), No Trend (Weekly)
• Dow Theory: No Trend (Weekly & Monthly)
• Mojo Score: 23.0 (Strong Sell, downgraded from Sell on 03 Nov 2025)

Investors should continue to monitor these indicators closely alongside fundamental developments to gauge the stock’s trajectory in the coming months.

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