Nestle India Ltd is a food processing company, predominantly engaged in the production of milk products and several other kinds of food products like cereals and beverages. Now, if we converse about the quarterly results, then the company has posted a net profit of Rs. 538.6 crore which was up nearly by 11 percent year on a year basis. Moreover, the revenue generated from operations grew by 14 percent and stood at Rs. 3476 crore YOY.
Furthermore, both domestic and export sales reach double-digit numbers in terms of growth, mainly driven by product mix and volume. The company has stated a rise of 13.7 percent in domestic sales least affected by the second wave of Covid-19.
Technical Outlook
Nestle India Ltd is now all set to move upward. After a long consolidation, Nestle is tossing around to turn out a healthy stock in the days ahead. On the daily chart, Nestle is forming an inverted head and shoulder pattern which reflects a clear indication of an upward trend.
On the pivot chart, we have seen quite a decent rally nearly of 2000 points i.e. from 16100—18000 in the last couple of months. Moreover, from the past 3 to 6 months, nestle made a low of 16100 and a high of 18449 thereby stating a positive trend from the recent levels.
If Nestle breaches above 18500 on a closing basis, then we may see further endless targets till 20500.
Traders are advised to buy on a sharp decline thereby maintaining a strict stop loss below 17000.
Over the coming days, we may see a good and healthy rally in consumer durable stocks. However, a worthy stock for long-term investment.
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