Nestle India - A Portfolio Stock for Long Term Investment

Maggi Back!!! will it bring Nestle again back on Track......

Nestle (India)

Monthly Chart  - 

* For Long Term perspective, Price looks to be continuously in Uptrend. Higher High formation is intact.

* Major Support will be 4525. Break below 4525 will be very negative, till that time be invested freshly in the stock from now onwards. Every fall is the opportunity to BUY with stop of 4525

* RSI is at 45 now. Above 40 it will remain bullish.

* RSI is getting weaken and falling but Price is getting stronger, this indicates reverse positive divergence or hidden divergence. It means that Price is falling but weaker compared with relative strength which indicate this fall is just a temporary phase, Once the RSI & Price took the support and reversed to upside then Price will shoot up like anything. Currently price & RSI is near to the support zone.

* Long term trend line support shown near 5170 and current is 5597.  Less than 1% away from the intermediate support. then why not start investing from now with stop of 2% rule? think!!!

Weekly Chart - 

* In Year 2014, upmove was started and made a high on March 2015, Almost 42 weeks upmove rally; thereafter, down move started  and it is still ongoing.... During this phase we have seen the problem of banning on its Product -Maggi.

* Downmove is still continue more than 42 weeks now, time wise correction exceeds 100% but pricewise it just retraced around 62% .... we cosidered this as a healthy correction. As of now, there was no sign of reversal except the Hammer candle at bottom or pin bar at bottom on weekly chart. Also, price is at near support zone. this conveys us that the downmove is at the matured stage and we need to look for reversal pattern now onwards.

Daily Chart - 

* As per the wave analysis, Complete downmove looks to be Complex Correction W-X-Y and currently 2nd Standard correction is going ON.

* Breakout above 5930 in a faster way will confirm the completion of correction, till that time downmove will continue.

* Wait and Watch for reversal soon or start investing in a SIP wise for next few weeks or months to avoid the bottom fishing....



Point & Figure 1% x rev 3 Chart of Nestle India - 

In worst condition, if support 5170 doesn't respect then what? 

Look at the Noiseless point & Figure chart for the next major support around 4700- 4800 which could will have high probability to hold




Happy Investing!!!