NESTLEIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | NESTLEIND | Market Cap | 2,47,483 Cr. | Current Price | 1,282 ₹ | High / Low | 1,340 ₹ |
| Stock P/E | 77.8 | Book Value | 23.7 ₹ | Dividend Yield | 1.05 % | ROCE | 95.7 % |
| ROE | 83.0 % | Face Value | 1.00 ₹ | DMA 50 | 1,279 ₹ | DMA 200 | 1,227 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | 0.35 % | PAT Qtr | 881 Cr. | PAT Prev Qtr | 753 Cr. |
| RSI | 47.5 | MACD | 6.69 | Volume | 11,82,123 | Avg Vol 1Wk | 20,11,441 |
| Low price | 1,055 ₹ | High price | 1,340 ₹ | PEG Ratio | 7.37 | Debt to equity | 0.10 |
| 52w Index | 79.9 % | Qtr Profit Var | 26.6 % | EPS | 17.2 ₹ | Industry PE | 50.0 |
📊 Chart & Trend Analysis:
NESTLEIND is trading at ₹1,282, slightly above its 50 DMA (₹1,279) and comfortably above its 200 DMA (₹1,227), indicating medium-term bullish strength. RSI at 47.5 suggests neutral momentum, not overbought or oversold. MACD at 6.69 shows a positive crossover, confirming upward bias. Bollinger Bands place price near the mid-range, reflecting consolidation with bullish undertone. Current volume (11.8 lakh) is lower than the 1-week average (20.1 lakh), showing reduced participation despite price strength.
📈 Momentum Signals:
- RSI neutral, leaning bullish.
- MACD positive crossover confirms upward momentum.
- Price above both 50 & 200 DMA supports bullish trend continuation.
- Lower volume indicates cautious investor sentiment.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹1,270 – ₹1,285 (near 50 DMA support).
- Exit Zone: ₹1,330 – ₹1,340 (resistance near recent highs).
- Stop Loss: ₹1,250 (below short-term support).
📌 Trend Status: The stock is consolidating with bullish bias, supported by moving averages and MACD strength, though volume weakness suggests cautious optimism.
Positive
- Exceptional ROCE (95.7%) and ROE (83.0%) highlight superior capital efficiency.
- Quarterly PAT improved to ₹881 Cr. from ₹753 Cr., showing strong earnings growth (+26.6%).
- EPS of ₹17.2 reflects consistent profitability.
- DII holding increased (+0.35%), showing domestic institutional support.
- Debt-to-equity ratio of 0.10 indicates low leverage risk.
Limitation
- High P/E (77.8) compared to industry average (50.0) suggests overvaluation.
- PEG ratio of 7.37 indicates expensive growth prospects.
- Dividend yield of 1.05% is modest compared to valuation.
- Trading volume below average shows weak investor conviction.
Company Negative News
- FII holding decreased (-0.01%), showing slight reduction in foreign investor confidence.
- High valuation may limit upside in the near term.
Company Positive News
- Quarterly profit growth of 26.6% signals strong operational performance.
- DII inflows reflect confidence from domestic institutions.
- Strong ROE and ROCE reinforce financial strength.
Industry
- Industry P/E at 50.0 is lower than NESTLEIND’s P/E (77.8), suggesting relative overvaluation.
- FMCG sector remains resilient, supported by steady demand and brand strength.
Conclusion
⚖️ NESTLEIND is consolidating with bullish bias, trading above key moving averages and supported by MACD strength. Fundamentals remain robust with strong profit growth, high ROE/ROCE, and institutional support, though valuations are stretched and volume weakness limits conviction. Short-term traders may consider entry near ₹1,270–₹1,285 with exits around ₹1,330–₹1,340, while long-term investors should monitor valuation risks before fresh accumulation.