DMart near 200 EMA ahead of Q1 results; Will stock see reversal or rangebound action?

Avenue Supermarts, which operates the DMart supermarket chain, will announce its Q1 results on Friday 11 July.

Last week, the company released its business update for the first quarter. Its standalone revenue from operations for the June quarter was ₹15,932 crore, marking a 16.1% year-on-year (YoY) increase. In the same quarter last year, DMart reported standalone revenue of ₹13,711 crore, while in the previous quarter it stood at ₹14,462 crore.

According to experts, DMart's net profit is expected to be between ₹870 crore and ₹910 crore, representing an increase of between 12% and 17% YoY. The company reported a net profit of ₹551 crore in the previous quarter, and ₹774 crore in Q1 FY25. Avenue Supermarts' EBITDA is expected to increase by 10–15% YoY to ₹1,350–1,410 crore. Meanwhile, DMart had 424 stores as of 30 June 2025.

DMart investors will be closely watching management commentary on the demand outlook, the company's overall performance, and key metrics such as same-store sales numbers. Shareholders will also be looking forward to the leadership transition at DMart, with new CEO Anshul Asawa set to take over the role completely from January 2026, when incumbent CEO Neville Noronha steps down after two decades with the company.

Ahead of the Q1 results announcement, DMart shares are trading 0.5% lower at ₹4,144 on 11 July. So far this year, DMart shares have delivered 17% return to investors.

Technical view

The technical structure of DMart remains rangebound and it slipped below its 50-day exponential moving average on the daily chart. Additionally, it is trading closer to the downward sloping trendline connecting swing lows of 3 March and 10 June.

For the upcoming sessions, traders can monitor the price action of DMart around the 50-day EMA and trendline. A decisive close below the trendline and 50-day EMA will signal weakness. Conversely, a rebound from the crucial support zone supported by bullish candlestick pattern will signal reversal.

Options build-up

Options data of DMart’s 31 July expiry saw significant call and put open interest (OI) at 4,200 strike, suggesting rangebound movement around this zone. Additionally, the highest call base was also seen at 4,500 strike, indicating resistance for DMart around this zone.

Options strategy for DMart

Given the implied movement of ±6.2% from the options market ahead of the 30 July expiry, traders can take a look at the long and short Straddle strategies to take advantage of the anticipated volatility and price swings.

Meanwhile, traders seeking a directional approach can explore spreads, which provide a refined alternative to simple option buying or selling.

• For a decisive break below 50-day EMA and trendline support, one can consider a bear put spread strategy. It involves buying a put option and selling a lower strike put, balancing risk and reward.
• For a bullish outlook, traders can consider a bull call spread strategy. It involves buying a call option while simultaneously selling a higher strike call with the same expiration, reducing cost while capping potential gains.

Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for educational purposes. We do not recommend any particular stock, securities and strategies for trading. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing.