NESTLEIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | NESTLEIND | Market Cap | 2,74,207 Cr. | Current Price | 1,422 ₹ | High / Low | 1,499 ₹ |
| Stock P/E | 79.4 | Book Value | 27.5 ₹ | Dividend Yield | 0.84 % | ROCE | 84.2 % |
| ROE | 73.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,364 ₹ | DMA 200 | 1,279 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.30 % | PAT Qtr | 1,141 Cr. | PAT Prev Qtr | 881 Cr. |
| RSI | 55.4 | MACD | 25.6 | Volume | 13,68,735 | Avg Vol 1Wk | 17,91,162 |
| Low price | 1,085 ₹ | High price | 1,499 ₹ | PEG Ratio | 6.06 | Debt to equity | 0.08 |
| 52w Index | 81.4 % | Qtr Profit Var | 28.8 % | EPS | 18.4 ₹ | Industry PE | 54.5 |
📈 Chart & Trend: NESTLEIND is trading at 1,422 ₹, above its 50 DMA (1,364 ₹) and 200 DMA (1,279 ₹), confirming strong bullish momentum. Support lies at 1,400–1,410 ₹, with resistance around 1,480–1,490 ₹.
🔎 Momentum Signals: RSI at 55.4 indicates balanced momentum leaning bullish. MACD at 25.6 shows a positive crossover, supporting upward bias. Entry zone: 1,400–1,410 ₹. Exit zone: 1,480–1,490 ₹.
📊 Volume Trends: Current volume (13.7 Lakh) is below the 1-week average (17.9 Lakh), suggesting reduced participation despite price strength.
📉 Bollinger Bands: Bands are moderately wide, reflecting volatility expansion and trending momentum.
📌 Trend Status: The stock is in a short-term uptrend supported by technical signals but facing valuation risks.
Positive
- Strong ROCE (84.2%) and ROE (73.2%) highlight exceptional efficiency.
- Trading above both 50 DMA and 200 DMA confirms bullish technical strength.
- Quarterly PAT growth (1,141 Cr. vs 881 Cr.) shows robust earnings momentum.
- DII holdings increased (+0.30%), reflecting domestic institutional support.
- EPS of 18.4 ₹ supports earnings visibility.
Limitation
- High P/E (79.4) compared to industry average (54.5) suggests steep overvaluation.
- PEG ratio of 6.06 indicates valuation premium relative to growth.
- Volume below average weakens conviction in breakout.
- RSI above 55 signals limited upside before overbought territory.
Company Negative News
- FII holdings declined (-0.07%), showing reduced foreign investor confidence.
Company Positive News
- Quarterly profit variation (+28.8%) highlights strong earnings growth.
- DII inflows (+0.30%) reflect domestic confidence.
Industry
- Industry PE at 54.5 highlights NESTLEIND trades at a premium.
- FMCG sector remains resilient, supported by consumer demand and pricing power.
Conclusion
NESTLEIND is in a short-term uptrend, trading above key moving averages with bullish RSI and MACD signals. Strong fundamentals and earnings growth support stability, though steep valuations and weak foreign sentiment limit upside. Best suited for cautious entry near 1,400–1,410 ₹ with profit booking around 1,480–1,490 ₹.
NESTLEIND is positioned in a short-term uptrend with strong fundamentals but valuation risks. To enrich this, I can extend into a peer benchmarking analysis or a sector overlay comparison to highlight its position against FMCG peers.