JUBILANT FOODWORKS: Multi-Year Breakdown Signals Continued Bearish Trend

$JUBLFOOD ✅ 1. Elliott Wave Structure After completing a major bullish cycle, the stock appears to be undergoing a prolonged corrective phase. The recent breakdown below the ₹410 support level indicates that the corrective structure is still unfolding, with a potential Wave C decline in progress. Until a strong reversal pattern develops, the broader trend remains bearish. ✅ 2. Bearish MACD Confirmation The MACD remains below the signal line and in negative territory, confirming persistent downside momentum. The expanding negative histogram reflects increasing selling pressure rather than signs of exhaustion. There is currently no meaningful bullish divergence to indicate an imminent reversal. ✅ 3. AVWAP Acting as Resistance The stock is trading below its key Anchored VWAP (AVWAP), indicating that institutional participants remain under pressure. Any pullback towards the AVWAP is likely to attract fresh selling, making it an important resistance zone. A sustained close above the AVWAP would be the first indication that buyers are regaining control. 💼 Fundamental Strength Despite the weak technical setup, the company continues to possess strong long-term business fundamentals. Market leader in India's organised quick-service restaurant (QSR) industry with well-established brands. Consistent revenue growth supported by store expansion and increasing digital sales. Strong cash generation and an asset-light franchise model support long-term scalability. However, elevated valuations, margin pressures, and slower discretionary spending have weighed on investor sentiment in the near term. Strong businesses can experience extended price corrections when earnings expectations moderate, making technical confirmation essential before considering fresh entries.