Bottom Fishing Opportunity: Devyani International Ltd

Devyani International portrays a promising technical scenario as the stock is trading in a long-term channel and showing signs of possible reversal. Recently, the stock price has witnessed a heavy sell-off near the oversold region, currently showing a good bounce back. Here is a detailed analysis.

Devyani International Ltd

Trading in Channel

The stock is currently exhibiting a trading pattern within a channel on the weekly time frame. This suggests that there is a defined range within which the stock price is fluctuating.

Stock at Channel Support

Devyani International share price currently positioned at the support level within the trading channel. This indicates a potential level of price stability where buying interest could emerge.

Support Near 144

The support level for the stock is noted to be around Rs 144. This level is crucial as it represents a potential make-or-break point for the stock’s price action. Holding above this level could indicate further bullish momentum, while a break below could signal a shift in trend.

Swing Reversal Possible

If the stock manages to hold above the support level of Rs 144, it could lead to a swing reversal in the price action, potentially signalling a bullish reversal.

RSI Reversing

The Relative Strength Index (RSI) is observed to be reversing from the oversold region, which is typically below 30. This suggests that the stock may have been oversold and could potentially see a rebound in price.

Volume Analysis

Volumes play a crucial role in confirming price trends. It’s noted that volumes are spiking on green days, indicating increasing buying interest during bullish phases. Conversely, spikes in red volumes are observed at exhaustion points of the trend, suggesting potential reversals.

Minor Resistance at Rs 200, Longer Expected Price Target is 52-Week High

There is a minor resistance level noted at Rs 200. However, the longer-term expected price target for the stock is the 52-week high, which stands at Rs 227.5. Breaking above Rs 200 could pave the way for further upside potential towards this target.

Based on the technical analysis provided, Devyani International Ltd appears to be at a critical juncture, with the potential for a bullish reversal if it manages to hold above the support level of Rs 144. Confirmation of this reversal could be supported by increasing volumes on green days and a break above minor resistance levels, with the ultimate target being the 52-week high.

Stock’s 52-week trading range is, with a high of Rs 227.5 and a low of Rs 133.95. The market capitalisation of the company stands at Rs 19,902.69 crore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.