Nestle India – Technical Analysis

FMCG 

In the face of recent market turbulence marked by profit-taking and downward movements, the strategic choice of portfolio diversification emerges as a prudent move. Amidst this market chaos, one remarkable player in the Fast-Moving Consumer Goods (FMCG) industry shines bright with a continuation breakout.

Check: Nifty FMCG Index

About – Nestle India

Introducing Nestle: Nestlé India Ltd, a subsidiary of the Swiss multinational Nestlé, specializes in the production and sale of a wide range of food products. From beverages to breakfast cereals, chocolates, dairy, nutrition, and more, Nestlé offers a diverse portfolio. With operations both in India and outside, the company has a rich history dating back to its founding in 1912 and is headquartered in Gurgaon, India.

Nestle India Limited, a key player in the food segment, has weathered its fair share of market ups and downs in recent weeks. Notably, it reached its peak at Rs 23,392.45 on July 06, 2023, before retracing from the rally that began on March 15, 2023, starting at Rs 17,880. It found solid support around the Rs 21,450 level, marking a retracement of approximately 38.2%.

Nestle India – Technical Analysis

In recent trading sessions, a tight consolidation range emerged, supported by the 100 Daily Moving Averages (DMA). The 14-day RSI indicator hovers in the bullish zone around the 67.63 level, with a positive crossover of the 5-13-26 DMA indicating favourable momentum. Notably, a breakout trendline has emerged, connecting peaks from July 06, 2023 (Rs 23,392.45) to October 04, 2023 (Rs 23,358.80), indicating the presence of a sustained continuation price pattern spanning nearly 65 days.

In recent sessions, NESTLE soared to a high of Rs 23,599.85, surpassing the mentioned breakout trendline level of Rs 23,350, and closed at Rs 23,554.35, confirming the breakout of the mentioned price pattern. Following this breakout, the stock holds the potential to reach Rs 26,850, representing a 15% gain from the breakout level. Nestle India Limited has now captured the attention of both swing traders and long-term investors, offering a promising opportunity for further upside potential in this continually changing market. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.