DEVYANI - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 2.8

📉 DEVYANI is currently in a reversing phase, with price action below key moving averages and weakening momentum indicators.

📊 Technical Overview

• Trend Status: Reversing — price has declined from ₹210 to ₹161, with a weak 52-week index of 39.0%.
• Moving Averages: Price is below both 50 DMA (₹169) and 200 DMA (₹170), confirming bearish sentiment.
• RSI (40.5): Near oversold territory, indicating weak momentum and potential for a technical bounce.
• MACD (-1.79): Negative crossover supports continued bearish pressure.
• Bollinger Bands: Price near lower band, suggesting volatility and possible short-term support.
• Volume: Above average (45.1L vs 33.4L), indicating active trading despite weakness.

📌 Entry & Exit Zones

• Support Zone: ₹155–₹160 — potential entry zone if reversal signals emerge.
• Resistance Zone: ₹170–₹175 — ideal for exit or partial profit booking.
• Breakout Level: ₹180+ — crossing this could signal trend recovery.

✅ Positive

• Quarterly PAT turned positive (₹6.21 Cr) from a loss of ₹13.3 Cr, indicating operational improvement.
• Strong volume and institutional interest from DIIs (+1.67%).

⚠️ Limitation

• Price trading below key moving averages with bearish MACD and weak RSI.
• Debt-to-equity ratio of 2.15 indicates high leverage risk.
• EPS is negative (-₹0.02), and ROE (2.20%) is low.

📰 Company Negative News

• FII holding declined by 2.87%, reflecting reduced foreign investor confidence.
• Quarterly profit variation of -80.4% suggests earnings volatility.

🌟 Company Positive News

• Return to profitability and strong domestic institutional support.

🏭 Industry

• Operates in quick-service restaurants, a sector driven by urban consumption and brand expansion.
• Industry P/E (504) is extremely high, indicating aggressive growth expectations across the sector.

🧾 Conclusion

• DEVYANI is technically weak in the short term with bearish indicators and declining price action.
• Entry near ₹155–₹160 only if reversal signs strengthen; watch for breakout above ₹180.
• Long-term investors should monitor debt levels and earnings consistency; short-term traders should remain cautious.