NESTLEIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | NESTLEIND | Market Cap | 2,81,264 Cr. | Current Price | 1,459 ₹ | High / Low | 1,470 ₹ |
| Stock P/E | 81.5 | Book Value | 27.5 ₹ | Dividend Yield | 0.93 % | ROCE | 84.2 % |
| ROE | 73.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,294 ₹ | DMA 200 | 1,251 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.30 % | PAT Qtr | 1,141 Cr. | PAT Prev Qtr | 881 Cr. |
| RSI | 79.5 | MACD | 59.3 | Volume | 24,99,206 | Avg Vol 1Wk | 27,91,650 |
| Low price | 1,085 ₹ | High price | 1,470 ₹ | PEG Ratio | 6.22 | Debt to equity | 0.08 |
| 52w Index | 97.0 % | Qtr Profit Var | 28.8 % | EPS | 18.4 ₹ | Industry PE | 57.1 |
📈 Chart & Trend: NESTLEIND is trading well above its 50 DMA (1,294 ₹) and 200 DMA (1,251 ₹), confirming strong bullish momentum. RSI at 79.5 indicates overbought conditions, while MACD at 59.3 shows strong bullish crossover. Bollinger Bands are stretched, suggesting high volatility and risk of short-term pullback. The stock is trending upward but nearing exhaustion.
🔎 Momentum Signals: Entry zone is favorable near 1,430–1,440 ₹ support. Resistance lies at 1,465–1,470 ₹. A breakout above 1,470 ₹ could extend toward 1,480–1,490 ₹, while a breakdown below 1,430 ₹ risks pullback toward 1,400–1,410 ₹.
📊 Volume Trends: Current volume (24.9 lakh) is slightly below the 1-week average (27.9 lakh), showing reduced participation despite price strength. Sustained higher volumes are needed to confirm bullish continuation.
Positive
- Strong ROCE (84.2%) and ROE (73.2%) highlight exceptional efficiency.
- EPS of 18.4 ₹ supports earnings visibility.
- Quarterly PAT growth (1,141 Cr. vs 881 Cr.) shows robust earnings momentum.
- DII holdings increased (+0.30%), reflecting domestic institutional support.
Limitation
- High P/E (81.5) compared to industry average (57.1) suggests steep overvaluation.
- PEG ratio of 6.22 indicates valuation premium relative to growth.
- RSI above 79 signals overbought conditions, limiting upside potential.
- Volume below average weakens conviction in breakout.
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 57.1 highlights NESTLEIND trades at a premium.
- FMCG sector remains resilient, supported by consumer demand and pricing power.
Conclusion
⚖️ NESTLEIND is trending upward with strong technical signals supported by robust fundamentals and earnings growth. Entry near 1,430–1,440 ₹ offers favorable risk-reward, while resistance lies at 1,465–1,470 ₹. Overvaluation, overbought RSI, and weak foreign sentiment are key risks. Suitable for cautious accumulation with profit booking near resistance levels.