Buy NESTLE INDIA
| CMP# | 14,486.8 |
| Idea | BUY |
| Buy Range | 14,155 – 14,367 |
| Target | 15,000 – 15,200 |
| StopLoss* | 13,980 |
| Duration | 12 – 15 Trading Sessions |
| Potential Return^ | 4 – 5% |
| CMP# | Idea | Buy Range | Target | StopLoss* | Duration | Potential Return^ |
| 14,486.8 | BUY | 14,155 – 14,367 | 15,000 – 15,200 | 13,980 | 12 – 15 Trading Sessions | 4 – 5% |
# CMP – closing market price on Nov 25, 2019
* Maintain recommended StopLoss by daily closing basis.
Once 1st target hit, reset StopLoss at 14,743.
^ The returns are calculated based on CMP#
COMPANY OVERVIEW
Nestle India, a subsidiary of Nestle Switzerland manufactures and sells milk and nutrition products e.g. condensed milk, yoghurt, dairy whitener, infant formula, baby food etc. The company also offers prepared dishes and cooking aids e.g. noodles, pasta, cereals, sauce, powdered and liquid beverages e.g. coffee and tea, and varieties of confectionary items e.g. chocolates, sugar confectionery products etc. Incorporated its first factory in 1961 at Punjab, Nestle India posts 33.47% jumps in net profit at Rs 595.41 crore in Q2FY20; revenue up 9.49%
| Stock Data | |
| NSE Code | NESTLEIND |
| Sectoral Index | Nifty FMCG |
| 52W High | 15,146.90 |
| 52W Low | 10,031.65 |
| Face Value | 10 |
TECHNICAL OBSERVATIONS (WEEKLY)
- On the weekly chart, the stock has been trading with it’s upward rising trend line since last August and it seems that it could continue with its ongoing move.
- We expect the stock to remain in a rising trajectory and extend the up move towards 15,000 in the coming months.
- The turnaround of the price structure after last four weeks price correction presents a fresh buying opportunity in the stock.
TECHNICAL OBSERVATIONS (DAILY)
- The stock has formed well defined Triangle Pattern over the last 2 months and a breakout above the upper side shows further bullishness.
- Stochastic crossing above oversold zone (20) indicate buying momentum and probable further rise.
