A not so recent post in the forum referred to demonic nakshatra where the member was worried that most of the planets in his/her chart are in demonic nakshatra. From the post, I gather that by demonic nakshatra the member is referring to the gana factor on horoscope compatibility – dev, manushya and rakshasa.
In my knowledge, The only place gana factor is referenced in within horoscope compatibility. This factor requires that the gana of the woman (refer to the nakshatra where the Moon resides in the kundali) should be better than the man she intends to marry.
I have not seen anyone referring to this factor while interpreting a chart or while making any predictions. I went back and re-read some of the books and notes that I have and could not find anything to this effect.
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