Coffee Day shares jump 17% today amid heavy trading volumes

Shares of Coffee Day Enterprises Ltd jumped nearly 17 per cent in early deals on Monday. The stock surged 16.75 per cent to hit a day high of Rs 39.81 over its previous close of Rs 34.10. Around 8.53 lakh shares changed hands today on BSE, which was more than four times compared to the two-week average volume of 2.01 lakh shares. Turnover on the counter stood at Rs 3.28 crore, commanding a market capitalisation (m-cap) of Rs 833.60 crore. There were 2,09,205 sell orders today against buy orders of 96,192 shares.

At today's high price of Rs 39.81, the stock traded 50.80 per cent higher from its 52-week low of Rs 26.40, a level seen on March 28 this year. That said, it has declined 45.84 per cent from its one-year high of Rs 73.50, hit on September 14, 2022.

The stock was last seen trading higher than the 5-day, 20-, 50- and 100-day moving averages but lower than the 200-day moving averages. The company's stock has a negative price-to-equity (P/E) ratio of 240.76. It has a price-to-book (P/B) value of 0.24.

The scrip has a one-year beta of 1.49, indicating high volatility on the counter.

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"Ahead of Q4 FY23 (March 2023 quarter) results, Coffee Day's stock price has seen a jump and now faces strong resistance at Rs 39.50 on the daily charts. Investors should book profits at current levels as the stock price entered the overbought zone or keep a strict stop loss placed at Rs 35.50," said AR Ramachandran from Tips2trades.

Coffee Day Enterprises is engaged in the trading of coffee beans. The company owns and operates a resort and renders consultancy services. It is also engaged in the coffee business which ranges from procuring, processing and roasting coffee beans to retailing coffee to domestic and overseas customers.

As of March 2023, promoters held a 9.59 per cent stake in the company.

Meanwhile, Indian equity benchmarks traded higher in early trade, led by gains in financials, consumer and technology stocks. The 30-share BSE Sensex pack was up 215 points or 0.35 per cent to trade at 62,243, while the broader NSE Nifty index was trading 55 points or 0.30 per cent higher at 18,370.

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