NESTLEIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | NESTLEIND | Market Cap | 2,32,024 Cr. | Current Price | 1,203 ₹ | High / Low | 1,340 ₹ |
| Stock P/E | 73.0 | Book Value | 23.7 ₹ | Dividend Yield | 1.12 % | ROCE | 95.7 % |
| ROE | 83.0 % | Face Value | 1.00 ₹ | DMA 50 | 1,268 ₹ | DMA 200 | 1,240 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | 0.35 % | PAT Qtr | 881 Cr. | PAT Prev Qtr | 753 Cr. |
| RSI | 32.0 | MACD | -23.8 | Volume | 12,07,910 | Avg Vol 1Wk | 14,27,033 |
| Low price | 1,074 ₹ | High price | 1,340 ₹ | PEG Ratio | 6.90 | Debt to equity | 0.10 |
| 52w Index | 48.3 % | Qtr Profit Var | 26.6 % | EPS | 17.2 ₹ | Industry PE | 49.4 |
📉 Chart & Trend: NESTLEIND is trading at ₹1,203, below both 50 DMA (₹1,268) and 200 DMA (₹1,240), confirming a bearish setup. RSI at 32.0 shows weak momentum, nearing oversold territory. MACD at -23.8 indicates strong negative crossover. Bollinger Bands suggest price is near the lower band, reflecting weakness with potential for short-term rebound.
📊 Volume: Current volume (12.0 L) is lower than the 1-week average (14.2 L), showing reduced participation and lack of strong buying interest.
📈 Momentum Signals: Short-term momentum remains negative. Support levels are seen at ₹1,180–₹1,190 and strong support at ₹1,074 (52-week low). Resistance lies at ₹1,240–₹1,268 (DMA cluster) and ₹1,340 (recent high).
🎯 Entry Zone: ₹1,180–₹1,190 (risk-managed entry zone).
🚪 Exit Zone: ₹1,240–₹1,268 (profit-taking zone near resistance).
🔎 Trend Status: Bearish reversal. The stock is reversing from highs, struggling to regain momentum, and remains under pressure below key moving averages.
Positive
- Strong ROCE (95.7%) and ROE (83.0%) show exceptional capital efficiency.
- EPS at ₹17.2 reflects consistent earnings power.
- DII holding increased by 0.35%, showing domestic institutional support.
- Quarterly PAT improved to ₹881 Cr from ₹753 Cr, showing earnings growth.
Limitation
- High P/E (73.0) compared to industry average (49.4) indicates overvaluation.
- Dividend yield of 1.12% is modest.
- PEG ratio of 6.90 suggests expensive growth prospects.
- Price trading below both 50 DMA and 200 DMA reflects technical weakness.
Company Negative News
- FII holding reduced by -0.01%, reflecting weaker foreign investor sentiment.
- RSI at 32.0 indicates oversold conditions, reflecting sustained selling pressure.
Company Positive News
- Quarterly profit variation at 26.6% highlights sequential improvement.
- DII inflows (+0.35%) show confidence in long-term fundamentals.
Industry
- Industry PE at 49.4 is lower than NESTLEIND’s P/E of 73.0, suggesting relative overvaluation.
- FMCG sector benefits from stable demand but faces margin pressures due to input costs.
Conclusion
⚠️ NESTLEIND is in a bearish reversal phase, trading below key moving averages with weak RSI and negative MACD. Fundamentals show strong efficiency, earnings growth, and institutional support, but stretched valuations, modest dividend yield, and weak technical momentum limit upside. Short-term traders may consider entries near ₹1,180–₹1,190 with exits around ₹1,240–₹1,268, while long-term investors should wait for valuation correction and stronger momentum before fresh accumulation.
Would you like me to extend this into a peer benchmarking overlay against other FMCG giants like HUL, Britannia, and Dabur? That would highlight whether NESTLEIND’s weakness is sector-driven or company-specific.