Nestle share price today: Investment strategy is WAIT and WATCH! Strict “No trade zone” this expert says!

Nestle share price today: The share price of Nestle India recovered after seeing a major fall on Wednesday in the early morning trade. At 1:40 pm Nestle India stock was trading at Rs 16,759.95 on the NSE down by over Rs 457 or 2.7 per cent from the previous close on Tuesday. The stock recovered by almost Rs 350 around this time, Technical Analyst Nilesh Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking said. 

Nestle India Q4 results: Jain said that the stock price of Nestle India fell on the back of lower than expectation results for the December 2020 quarter. This FMCG major posted a 2.25 per cent year-on-year (YoY) rise in net profit at Rs 483.31 cr for the fourth quarter on Tuesday. Nestle India which follows the January-December financial year, had posted a profit of Rs 472.64 crore during the same period in FY 19. 

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Nestle India Share Price Strategy: The AVP said that the strategy for Nestle India is Wait and Watch! He said there is a strict No trade zone for this stock. The immediate trend shows a sideways movement as of now. This is not to say that the trends are wea, he added. 

There is a strong barrier for Nestle India in the range between 18,500 and 18,800. The immediate resistance is at 17,700. He said the current support zone is Rs 16,000. He said that the stock is expected to trade in a range. 

The 52-week high of Nestle India stock is Rs 18,884 which was achieved on 202 December 2020.  

People who are willing to take a fresh long position on Nestle India stock should wait for a few trading sessions, he said. He said that this is an evergreen stock, which could be kept for long term, recommending a Hold for people who have bought this stock. 

Outlook for FMCG sector 

Jain said that the sector is seeing a consolidation phase. The Nifty FMCG was also own by 0.7 per cent around this time trading at 33,470.05. The support is around 33,000 he said.