NESTLEIND - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.3

📊 Chart Patterns: NESTLEIND is trading at 1,243 ₹, slightly below its 50 DMA (1,240 ₹) and above its 200 DMA (1,205 ₹). The chart shows sideways consolidation after a correction from the 52-week high (1,312 ₹).

📈 Moving Averages: Price is hovering near the 50 DMA, with support at 1,205 ₹ (200 DMA). Sustaining above 1,240 ₹ is crucial for bullish continuation.

📉 RSI: At 44.6, RSI is neutral, suggesting consolidation with limited downside risk.

📉 MACD: Negative (-6.84), showing bearish crossover and short-term weakness.

📊 Bollinger Bands: Price is near the mid-band, indicating consolidation with potential breakout if volumes rise.

📊 Volume Trends: Current volume (7.39 lakh) is below average weekly volume (8.18 lakh), showing reduced participation and lack of strong momentum.

📍 Momentum Signals: Short-term momentum is consolidating. RSI and MACD suggest sideways movement before a possible breakout.

🎯 Entry Zone: 1,220–1,240 ₹ (near DMA support). Good accumulation zone for traders.

🎯 Exit Zone: 1,280–1,310 ₹ (near resistance and 52-week high). Profit booking advised around 1,312 ₹.

🔎 Trend Status: The stock is consolidating after a rally, with sideways movement expected near support levels.

Positive

• Strong ROCE (95.7%) and ROE (83.0%) indicate excellent efficiency.
• Dividend yield of 1.10% provides steady income.
• EPS of 15.5 ₹ supports valuation strength.
• DII holdings increased (+0.57%), showing domestic investor confidence.

Limitation

• High P/E (80.1) compared to industry average (48.7), indicating premium valuation.
• PEG ratio (7.58) suggests poor growth prospects relative to valuation.
• MACD negative, showing short-term weakness.
• Volume participation below average.

Company Negative News

• Quarterly PAT declined slightly (-1.88%).
• FII holdings decreased (-0.46%).
• Stock corrected from 1,312 ₹ to 1,243 ₹.

Company Positive News

• Strong efficiency metrics (ROCE 95.7%, ROE 83.0%).
• DII holdings increased (+0.57%).
• Dividend yield of 1.10% supports investor returns.

Industry

• Industry PE is 48.7, lower than NESTLEIND’s 80.1, highlighting premium valuation.
• FMCG sector remains defensive with steady demand and long-term growth potential.

Conclusion

⚠️ NESTLEIND is consolidating near support levels with weak technical momentum. Fundamentals show strong efficiency and dividend support, but high valuation limits upside. Traders may consider entries near 1,220–1,240 ₹ with exits around 1,280–1,310 ₹. Long-term investors should wait for earnings growth to justify premium valuation before committing further.