NESTLEIND - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.7

📉 Technical & Momentum Analysis

Price Positioning: Current price ₹2,224 is below both 50 DMA (₹2,381) and 200 DMA (₹2,355) — bearish trend.

RSI (27.9) — deeply oversold, may signal a short-term bounce but also reflects weakness.

MACD (-29.8) — strongly negative, confirming downward momentum.

Volume: Below 1-week average — indicates lack of buying interest.

📊 Fundamental Overview

Valuation

P/E (72.1) vs Industry P/E (59.1) — highly overvalued.

EPS (₹32.2) — decent earnings, but not enough to justify premium.

Book Value (₹41.6) — price trades at ~53x book, very steep.

Profitability

ROCE (96.3%) and ROE (83.5%) — exceptional returns, industry-leading efficiency.

Dividend Yield (1.21%) — modest, adds some holding value.

Quarterly Performance

PAT Qtr: ₹647 Cr vs Prev Qtr: ₹873 Cr — significant decline (−13.4%).

Debt-to-Equity (0.29) — low leverage, financially sound.

FII/DII Holding

FII up (+0.26%), DII down (−0.12%) — mixed institutional sentiment.

⚠️ Swing Trade Strategy

Current Setup: Weak technicals and overvaluation make it a poor swing trade candidate right now.

Wait for Reversal: RSI recovery above 35 and MACD crossover would be key triggers.

Optimal Entry Price: ₹2,180–₹2,200 (near support zone and psychological level)

Target Exit Price: ₹2,350–₹2,400 (near 200 DMA and resistance zone)

Stop Loss: ₹2,100 (below recent low and psychological support)

🧭 If You Already Hold the Stock

Hold only if expecting a technical rebound; otherwise, consider trimming.

Exit near ₹2,350–₹2,400 if bounce occurs.

Cut Losses if price breaks below ₹2,100 or RSI remains below 30 with MACD worsening.

While Nestlé India is fundamentally strong, its current technical setup and valuation make it a weak candidate for short-term swing trading.

Edit in a page