Nestle India medium term and long term investment analysis May 2020.

                 Nestle India
   24 May 2020

 Introduction


Nestlé.SA is a Swiss multinational food and beverage conglomerate.It is the largest food company in the world.ranked 64  on Forbes in 2017.
Nestlé  relationship with India started in 1912 importing and sellling finished products.

After Indian Independence,the economic policy of India demanded local production and Nestle responded with their first factory in India in 1961.

CEO of Nestle India 

Suresh Narayanan from 2015 to present.
He joined the company in 1999.He has worked with Hindustan Unilver and Colgate before joining Nestle.He has over 30 years experience in FMCG.

Nestle India products


Nestle India manufactures products under brand names, such as Nescafe, Maggi, Milkybar, Milo, Kit Kat, Bar-One, Milkmaid and Nestea. The company has also introduced products of daily consumption and use, such as Nestle Milk, Nestle Slim Milk, Nestle Fresh n Natural Dahi and Nestle Jeera Raita.


Near term trend (consumption and business).

Nestle India is doing good business in the recent past.Excellent performance against the competitors.






Technical analysis of Nestlé India



It broke the 2015 to 2018 resistance to give a big rally,the stock then corrected 50% .
If you look at nestle it’s clear that this stock has quality retracement,even if you miss the breakout you can cash in with the retracement.For traders it’s double opportunity.

The new CEO was able to bring quality return, his long experience in FMCG is clearly shown.
Nestle is truly showing good numbers,growth and is a good candidate to buy on dips.





15000 is an important support zone especially considering the amount of spring action rejection projected.

If the stock is showing strength then all time breakout can be traded.

If the 15000 zone is showing strength that is another value area to buy but It looks like the stock could consolidate for a while here and safe investors should only enter once index and the stock clearly showing strength.

A simple investment Strategy

Buy x quantity when it touch 15k, if it dips add x at 14k ,add 2x at 12k and keep a strict weekly stop below 11800.
X should not be large quantity and it should be something in you lesser risk range.


Conclusion

This stock is bullish,it’s a good candidate for portfolio.Buying on dips is a good strategy,also the stock is not far from its all time high and the results and growth also in the stock favour.The parent company is powerful and a clear dominator in FMCG business with years of operational experience.Nestle seems to have lesser risk compared to his counterparts.

Notice-this is a trading /investment lesson and this is not an advice.Do your own research before risking money .







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