DEVYANI - Technical Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Technical Rating: 2.6

Here’s a close-up technical view of Devyani International Ltd., highlighting momentum cues, support/resistance zones, and trend signals

📉 Trend Overview

Current Price: ₹167

Trading below both 50 DMA and 200 DMA (₹171) → signals a short-term downtrend and lack of bullish momentum

Recent drop from ₹223 to ₹167 confirms price reversal, now showing signs of consolidation, potentially searching for a bottom

📊 Momentum Indicators

RSI: 39.2

In oversold zone, may suggest technical bounce, though trend is still weak

MACD: +0.16

Barely positive → no strong momentum shift yet

Volume: ₹10.1L vs avg ₹9.5L

Volume is steady, hinting at neutral sentiment, no aggressive buying

💹 Moving Averages

Indicator Level (₹) Signal

50 DMA 171 Minor resistance

200 DMA 171 Trend pivot level

Since both moving averages converge near ₹171, breaking and sustaining above this could signal trend reversal.

📎 Bollinger Bands

Price hovering close to lower band → suggests oversold condition

Bands are narrowing, indicating low volatility and likely consolidation zone

📍 Trade Zones

Zone Type Price Range (₹) Strategy

Entry Zone 160–165 Speculative accumulation for short swing

Resistance 170–174 Watch for breakout confirmation

Exit Target 178–184 Short-term target if reversal confirms

Support Zone 155–158 Breakdown risk zone, tight stop-loss area

📌 Fundamental & Institutional Notes

FII Hold ↓ 1.04%, DII Hold ↑ 1.22% → conflicting signals; domestic support, foreign pullback

PAT sharply negative, poor quarterly performance adds downside risk

Debt-to-equity: 2.91 → highly leveraged structure limits flexibility

ROCE 6.42% / ROE -0.95% → weak operational efficiency

Absence of valid P/E and PEG suggests profitability concerns

EPS ₹0.08 vs Industry PE 189 → trading at valuation extremes given earnings stress

🧭 Conclusion

Devyani is currently consolidating, with weak technicals and bearish fundamentals. Oversold RSI and steady volume suggest bounce potential near ₹160, but trend reversal requires decisive breakout above ₹171. Use cautious positioning with tight stop-losses below ₹155 and monitor volume for signal clarity.

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