Nestle India Limited (NESTLEIND) Stock - Complete Technical Analysis - Oct 14, 2024

Is Nestle India Stock Headed for a Reversal Technical Analysis & Key Support Levels

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Nestle India Limited (NESTLEIND) Technical Analysis

The current price of Nestle India is 2,502.05, showing a decline of 9.93% from its 52-week high of 2,778, while trading 9.00% above the 52-week low of 2,295.54. The stock is experiencing consolidation, indicated by an Inside Candle Pattern seen on October 9, 2024. This signifies indecision in the market, as the stock's price is trapped within a narrow range, with a parent high of 2,580 and low of 2,468.95, lasting for four days.

Trend and Momentum Indicators:

MACD indicates bearish momentum with the MACD level below the signal line, suggesting weakness.

RSI is currently at 36.64, which shows the stock is nearing oversold territory but not yet at a reversal point.

ADX is at 23.57, indicating a weak trend, with neither bulls nor bears showing strong control.

Stochastic %K and Stochastic RSI both indicate oversold conditions, with the latter at 0, showing extreme weakness, but also a potential for a reversal.

Moving Averages: The stock is trading below key moving averages, including the 10-day, 20-day, and 50-day Exponential Moving Averages (EMA) and Simple Moving Averages (SMA), which shows a bearish bias:

10-day EMA 2,566.85, 50-day EMA 2,573.33.

10-day SMA 2,586.79, 50-day SMA 2,558.37.

Support and Resistance Levels:

Strong resistance levels are seen at the Pivot Points:

Classic Pivot Resistance (R1) is at 2,815.97, which will act as a major upside target in case of a bullish move.

Fibonacci Resistance (R1) at 2,762.76 also aligns closely with upper resistance zones.

Immediate support lies at 2,500, a psychological and technical level. Below that, the Classic Pivot Support (S1) is at 2,525.97, and Fibonacci Support (S1) at 2,541.20.

Deeper support can be expected at Camarilla Pivot S3 around 2,610.2 and Woodie Pivot S3 at 2,371.5, indicating where the stock could head in case of further selling pressure.

Volatility and Reversal Potential:

Average True Range (ATR) suggests significant volatility, especially with a sudden price drop from 2,579 to 2,468 on October 9, 2024, followed by a consolidation. A close watch is needed as the ATR indicates potential for sharp moves.

The Awesome Oscillator and Williams Percent Range both show bearish sentiment, with -89.29 on the Williams %R suggesting extreme oversold conditions. This, combined with an oversold Stochastic, could hint at an upcoming reversal if the stock sustains above its support levels.

Final Observations: With the current weak trend indicated by the ADX and overall bearish sentiment across oscillators, the stock is likely to continue facing pressure in the near term. However, the oversold readings on multiple indicators such as RSI, Stochastic, and Williams %R provide hope for a potential reversal if supported by a rise in volume and breach of key resistance levels. Traders should watch for a break above 2,580 to confirm any bullish reversal.