Intraday Price Movement and Trading Dynamics
On the trading day, Varun Beverages Ltd opened with a significant gap-up of 2.87%, signalling strong buying interest from the outset. The stock maintained upward momentum, eventually touching its intraday peak at Rs 487, representing a 4.39% increase from the prior close. By the end of the session, the stock recorded a day change of 3.77%, outperforming the broader Sensex index, which gained 2.79% on the day.
The stock’s performance marked a reversal after two consecutive days of decline, indicating renewed strength in price action. This rebound was further underscored by the stock outperforming its sector, the Breweries & Distilleries segment, which itself gained 2.45% during the session. Varun Beverages Ltd outpaced the sector by 1.32%, highlighting its relative strength within the beverages industry.
Technical Positioning and Moving Averages
From a technical standpoint, Varun Beverages Ltd’s price remains above its 5-day, 50-day, 100-day, and 200-day moving averages, signalling sustained medium- to long-term support levels. However, the stock is trading below its 20-day moving average, suggesting some short-term consolidation or resistance near recent price levels. This mixed technical picture reflects a stock that is regaining momentum but still faces near-term hurdles.
The intraday high of Rs 487 represents a key resistance level that traders will monitor closely in subsequent sessions. The stock’s ability to hold above its longer-term moving averages provides a foundation for continued price stability amid broader market fluctuations.
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Comparative Performance Against Benchmarks
Varun Beverages Ltd’s intraday gains outpaced the Sensex’s 2.79% rise, with the stock appreciating 3.55% over the single trading day compared to the benchmark. Over the past week, the stock has gained 2.44%, slightly trailing the Sensex’s 2.56% advance. On a one-month horizon, the stock has declined by 2.13%, closely mirroring the Sensex’s 2.11% drop.
Longer-term performance shows a mixed trend. Over three months, Varun Beverages Ltd has gained 1.75%, outperforming the Sensex’s marginal decline of 0.03%. However, the stock has underperformed the benchmark over the past year, with a negative return of 17.12% versus the Sensex’s positive 8.76%. Year-to-date, the stock’s decline of 1.39% is marginally better than the Sensex’s 1.49% fall.
Over extended periods, Varun Beverages Ltd has delivered substantial gains, with a three-year return of 108.02% compared to the Sensex’s 37.98%, and a five-year return of 511.55% versus the Sensex’s 67.05%. These figures highlight the stock’s strong historical growth trajectory despite recent volatility.
Sector and Market Context
The broader Breweries & Distilleries sector gained 2.45% on the day, supported by positive sentiment in consumer discretionary stocks. Varun Beverages Ltd’s outperformance within this sector underscores its relative strength amid sector-wide gains.
Meanwhile, the Sensex opened sharply higher by 3,656.74 points but lost momentum to close with a gain of 2.79%, trading at 83,945.55. The index remains 2.64% below its 52-week high of 86,159.02. Notably, the Sensex is trading below its 50-day moving average, although the 50DMA itself is positioned above the 200DMA, indicating a cautiously positive medium-term trend. Mega-cap stocks led the market rally, contributing to the overall positive market environment.
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Mojo Score and Rating Update
Varun Beverages Ltd currently holds a Mojo Score of 50.0, reflecting a balanced outlook. The company’s Mojo Grade was upgraded from Sell to Hold on 26 Nov 2025, indicating an improvement in its overall assessment. Despite this upgrade, the stock’s Market Cap Grade remains at 1, suggesting a relatively modest market capitalisation compared to peers.
This rating adjustment aligns with the stock’s recent price recovery and improved trading dynamics, as evidenced by today’s strong intraday performance. The Hold grade signals a neutral stance, reflecting neither strong bullish nor bearish momentum at present.
Summary of Trading Action
In summary, Varun Beverages Ltd’s trading session on 3 Feb 2026 was marked by a strong intraday rally, with the stock reaching Rs 487 at its peak and closing with a 3.77% gain. The price action reversed a two-day decline and outperformed both its sector and the broader market indices. Technical indicators show the stock maintaining support above key moving averages, although short-term resistance remains near the 20-day average.
The broader market environment was positive, with mega-cap stocks leading the Sensex higher despite some intraday volatility. Varun Beverages Ltd’s relative strength within the beverages sector and its upgraded Mojo Grade to Hold provide context for the stock’s current positioning.
Investors and market participants will likely continue to monitor the stock’s ability to sustain gains above the intraday high and its interaction with moving average levels in the near term.
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