Varun Beverages Ltd Shows Mixed Technical Signals Amid Price Momentum Shift

Technical Trend Evolution and Price Movement

Varun Beverages, a key player in the beverages sector, currently trades at ₹509.85, up 2.07% from the previous close of ₹499.50. The stock’s intraday range today spanned from ₹497.65 to ₹511.70, indicating moderate volatility. Over the past week, the stock has outperformed the Sensex, delivering a 4.08% return compared to the benchmark’s decline of 0.30%. This positive short-term momentum contrasts with the one-year performance, where Varun Beverages has declined by 17.77%, while the Sensex gained 8.65%. Longer-term returns remain robust, with a five-year gain of 487.29% significantly outpacing the Sensex’s 76.66% rise.

MACD Signals: Divergent Weekly and Monthly Perspectives

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD is mildly bullish, suggesting that recent momentum is gaining strength and could support further upside in the near term. However, the monthly MACD remains mildly bearish, indicating that the broader trend still faces downward pressure. This divergence implies that while short-term traders may find opportunities, longer-term investors should remain vigilant for potential reversals or consolidation phases.

RSI and Momentum Oscillators: Neutral to Bullish Bias

The Relative Strength Index (RSI) on both weekly and monthly charts currently signals no definitive trend, hovering in neutral territory. This lack of extreme readings suggests the stock is neither overbought nor oversold, providing a balanced backdrop for price action. Complementing this, the Know Sure Thing (KST) oscillator is bullish on a weekly timeframe but bearish monthly, reinforcing the theme of short-term strength amid longer-term caution.

Bollinger Bands and Moving Averages: Conflicting Signals

Bollinger Bands on the weekly chart indicate a bullish stance, with the price approaching the upper band, signalling potential upward momentum. Conversely, the monthly Bollinger Bands are mildly bearish, reflecting a wider trend of subdued price action. Daily moving averages also lean mildly bearish, with the stock trading near or slightly below key averages, suggesting resistance levels may cap near-term gains.

Volume and Dow Theory Confirmation

On-Balance Volume (OBV) readings are mildly bullish on both weekly and monthly scales, indicating that volume trends support the recent price advances. Additionally, Dow Theory assessments show a mildly bullish trend on both weekly and monthly charts, providing further confirmation that the stock may be stabilising after previous declines.

Mojo Score Upgrade Reflects Improving Sentiment

MarketsMOJO has upgraded Varun Beverages’ Mojo Grade from Sell to Hold as of 26 Nov 2025, reflecting an improved technical and fundamental outlook. The current Mojo Score stands at 55.0, signalling a neutral stance that suggests neither strong buy nor sell momentum. The Market Cap Grade remains at 1, indicating a relatively modest market capitalisation compared to peers. This upgrade aligns with the technical shift from mildly bearish to sideways, signalling a potential base formation or consolidation phase.

Comparative Performance and Sector Context

Within the beverages sector, Varun Beverages’ recent price momentum contrasts with broader industry trends, where many peers have experienced mixed results amid fluctuating consumer demand and input cost pressures. The stock’s ability to outperform the Sensex over short and medium terms highlights its relative resilience. However, the significant one-year underperformance underscores ongoing challenges, including competitive pressures and macroeconomic headwinds.

Investor Implications and Outlook

For investors, the current technical landscape suggests a cautious approach. The mildly bullish weekly MACD and KST indicators offer short-term trading opportunities, especially given the stock’s recent 2.07% daily gain and positive weekly returns. However, the mildly bearish monthly MACD and Bollinger Bands, coupled with daily moving averages signalling resistance, advise prudence for longer-term positions. The neutral RSI readings further imply that the stock is in a consolidation phase, awaiting a catalyst to break decisively in either direction.

Valuation and Risk Considerations

Trading at ₹509.85, Varun Beverages remains below its 52-week high of ₹645.85 but comfortably above the 52-week low of ₹419.40. This price range reflects significant volatility over the past year. Investors should weigh the stock’s strong long-term returns against recent volatility and sector-specific risks such as regulatory changes, commodity price fluctuations, and evolving consumer preferences.

Conclusion: Navigating a Mixed Technical Landscape

Varun Beverages Ltd’s recent technical parameter changes highlight a stock in transition. The shift from a mildly bearish to a sideways trend, supported by mixed signals from MACD, RSI, Bollinger Bands, and moving averages, suggests a period of consolidation. While short-term momentum indicators provide some bullish cues, longer-term signals counsel caution. Investors should monitor upcoming earnings, sector developments, and broader market conditions to gauge whether Varun Beverages can sustain an upward trajectory or if further correction lies ahead.

Summary of Key Technical Indicators:

• MACD: Weekly mildly bullish; Monthly mildly bearish


• RSI: Neutral on both weekly and monthly charts


• Bollinger Bands: Weekly bullish; Monthly mildly bearish


• Moving Averages: Daily mildly bearish


• KST: Weekly bullish; Monthly bearish


• Dow Theory: Mildly bullish on weekly and monthly


• OBV: Mildly bullish on weekly and monthly

Given these mixed signals, Varun Beverages remains a stock to watch closely, with potential for both upside and downside depending on market catalysts and sector dynamics.

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