Jubilant Food, Devyani: Will Budget-led consumption boost pop their stocks?

Shares of Restaurant Brands Asia, Westlife Foodworld, Sapphire Foods India, Jubilant Foodworks and Devyani International can rally up to 15% from present levels, suggest technical charts.

Budget 2025 is set to boost spending owing to higher disposable income, especially in the hands of the middle-class, given the sharp reduction in personal income taxes.  Finance minister Nirmala Sitharaman has proposed to exempt income up to Rs 12 lakh from taxation from the upcoming financial year onwards. The earlier exemption limit stood at Rs 7 lakh.  This would mean, that those earning about Rs 1 lakh a month no longer pay income tax, and also that those earning at higher levels pay less thanks to updated tax slabs. This will then turn into greater household consumption demand and ideally into private-sector investment and growth. READ BS Editorial  Among consumption related sectors, apart from FMCG, consumer durables, travel & hospitality, fashion, auto and real-estate; companies in the fast-food servicing business or also more prominently known as Quick Service Restaurants (QSRs) are also likely to see higher footfalls given the increasing disposable income.  As such stocks of Jubilant Foodworks which operates Domino's, Westlife Foodworld, which operates McDonald's, and Restaurant Brands Asia have been in focus, and rallied up to 21 per cent in the last three trading sessions.    Westlife Foodworld led the rally, with a 21 per cent gain on the bourses followed by Sapphire Foods and Devyani International - up 10.2 per cent and 8.5 per cent, respectively. Restaurant Brands Asia (RBA) and Jubilant Foodworks gained 6 per cent and 3 per cent, respectively. In comparison, the NSE Nifty 50 index advanced 1 per cent in the same period.  Going ahead, here a trading strategy in QSR stocks based on the technical charts.  Jubilant Foodworks  Current Price: Rs 727  Upside Potential: 12.8%  Support: Rs 697; Rs 665  Resistance: Rs 745; Rs 757; Rs 782; Rs 802  Jubilant Foodworks stock is seen trading with a positive bias across time-frames, as the stock holds above the key moving averages. The short-term bias for the stock is likely to remain upbeat as long as the stock holds above Rs 697; below which the medium-term support for the stock stands at Rs 665. CLICK HERE FOR THE CHART  On the upside, the stock faces near resistance around Rs 745; break and sustained trade above the same can trigger a rally towards can potentially trigger a rally towards Rs 820. Interim resistance for the stock are placed at Rs 757, Rs 782 and Rs 802 levels.  Westlife Foodworld  Current Price: Rs 857  Upside Potential: 12.6%  Support: Rs 849; Rs 827  Resistance: Rs 915  Westlife Foodworld stock is likely to trade on an upbeat note as long as the stock trades above Rs 849. On the upside, the stock seems on course to test Rs 965, with interim resistance seen at Rs 915. In case of a dip, the stock is expected to find support around Rs 827 levels. CLICK HERE FOR THE CHART    Restaurant Brands Asia (RBA)  Current Price: Rs 79.20  Upside Potential: 9.9%  Support: Rs 76  Resistance: Rs 79.60; Rs 81.50; Rs 83  RBA stock is seen rebounding from oversold zone. The stock had tumbled by nearly 35 per cent in the preceding four months. At present, the stock is seen testing a minor resistance on the daily scale at Rs 79.60, above which the stock can potentially extend the pullback towards Rs 87 levels. Interim resistance for the stock can be anticipated at Rs 81.50 and Rs 83. Short-term bias is likely to remain positive as long as stock holds above Rs 76. CLICK HERE FOR THE CHART  Sapphire Foods India  Current Price: Rs 321  Upside Potential: 15.3%  Support: Rs 311; Rs 295  Resistance: Rs 330; Rs 340  Sapphire Foods India is seen trading with a favourable bias on the medium-term charts, with the stock finding support around its 100-WMA (Weekly Moving Average) in times of crisis since October 2023. Last week, too, the stock tested the support around the 100-WMA, which now stands at Rs 295 and then bounced back. On the upside, the stock can potentially rally to Rs 370; with interim resistance placed at Rs 330 and Rs 340 levels. Near support for the stock is seen at Rs 311. CLICK HERE FOR THE CHART    Devyani International  Current Price: Rs 183.5  Upside Potential: 13.9%  Support: Rs 177; Rs 171  Resistance: Rs 187; Rs 195  Devyani International rallied nearly 24 per cent from its January low of Rs 157 to a high of Rs 194 on the Budget day. The stock, at present, is seen testing resistance around the super trend line on the daily scale at Rs 187; above which the key hurdle stands at Rs 195. The stock will need to break the same to rally towards Rs 209. Support on the downside is visible at Rs 177 and Rs 171 levels. CLICK HERE FOR THE CHART