NESTLEIND - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.9

📊 Swing Trade Analysis: NESTLEIND (Nestlé India Ltd.)

Nestlé India offers a moderately attractive swing trade setup. While the fundamentals are exceptional and technical indicators are supportive, the high valuation and recent earnings dip suggest a cautious approach for short-term traders.

✅ Strengths

Fundamental Quality

ROCE (95.7%) and ROE (83.0%): Outstanding capital efficiency.

EPS (₹16.7) and consistent profitability.

Debt-to-Equity (0.28): Low leverage.

Dividend Yield (1.12%): Adds passive income.

DII Holding Increase (+0.13%): Positive domestic sentiment.

Technical Momentum

MACD (14.3): Bullish crossover — signals upward momentum.

RSI (58.0): Positive, with room before overbought.

Price above 50 DMA (₹1,180) and 200 DMA (₹1,174): Confirms bullish trend.

Volume above average: Indicates strong trader interest.

⚠️ Risks

Valuation

P/E (77.5) vs Industry PE (64.6): Overvalued.

PEG Ratio (7.33): Indicates poor growth relative to valuation.

Earnings Dip

PAT Qtr (₹659 Cr.) vs Prev Qtr (₹885 Cr.): Sequential decline.

Qtr Profit Var (-11.7%): Year-over-year contraction.

52w Index (46.1%): Mid-range — not near breakout zone.

🎯 Optimal Entry Price

Entry Zone: ₹1,180–₹1,190

A pullback near the 50 DMA offers a better risk-reward setup.

🚪 Exit Strategy (If Already Holding)

Target Exit Price: ₹1,350–₹1,380

Near recent high and psychological resistance.

Stop Loss: ₹1,150

Just below 200 DMA and support zone.

Time Horizon: 1–2 weeks, depending on MACD strength and volume behavior.

This setup suits traders looking for stability and modest upside in a fundamentally strong stock. Let me know if you'd like help tracking this trade or scanning similar setups.

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