DEVYANI - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 2.3

📊 Technical Analysis

• Chart Patterns: Price (131 ₹) is below both 50 DMA (146 ₹) and 200 DMA (162 ₹), indicating strong weakness.
• Moving Averages: Bearish bias as price trades under short-term and long-term averages.
• RSI: 25.8 → deep oversold zone, suggesting potential for technical rebound but trend remains weak.
• MACD: -5.50 → bearish crossover, confirming downward momentum.
• Bollinger Bands: Price near lower band, indicating oversold conditions and possible short-term bounce.
• Volume Trends: Current volume (16.9 Lakh) is slightly above 1-week average (15 Lakh), showing active selling pressure.

📈 Momentum & Signals

• Short-term Momentum: Bearish bias with oversold RSI suggesting possible short-term bounce.
• Support Zones: 125 ₹ (near-term), 122 ₹ (52-week low), 115 ₹ (major support).
• Resistance Zones: 146 ₹ (50 DMA), 162 ₹ (200 DMA), 175 ₹ (psychological resistance).
• Optimal Entry: 125–122 ₹ range if RSI remains oversold.
• Optimal Exit: 146–162 ₹ range unless breakout above 175 ₹.
• Trend Status: Stock is trending downward with oversold signals; possible consolidation near support levels.

✅ Positive

• DII holdings increased (+1.67%), showing domestic institutional confidence.
• Strong industry PE (123) indicates sector growth potential.

⚠️ Limitation

• Price trading below both 50 DMA and 200 DMA, showing weakness.
• High debt-to-equity ratio (1.59) indicates leverage risk.
• ROCE (7.53%) and ROE (2.20%) are weak, showing poor efficiency.
• EPS (-0.14 ₹) is negative, reflecting losses.

📉 Company Negative News

• PAT dropped from 6.21 Cr. to -14.3 Cr., showing losses.
• Quarterly profit variation down by -1,505%, reflecting severe earnings pressure.
• FII holdings decreased (-2.87%), showing reduced foreign investor confidence.

📈 Company Positive News

• DII holdings increased, balancing FII outflows.
• Industry valuations remain high, supporting long-term sector outlook.

🏭 Industry

• Industry PE at 123, much higher than company’s negative EPS, suggesting sector trades at a premium.
• Quick-service restaurant sector remains competitive with strong demand but margin pressures.

🔎 Conclusion

• Stock is in a downtrend with oversold RSI suggesting possible short-term bounce.
• Best entry near 125–122 ₹; exit near 146–162 ₹ unless breakout above 175 ₹.
• Long-term investors should be cautious due to weak fundamentals, high debt, and negative profitability despite sector growth potential.