Trade Idea of The Day - Nestle India Ltd Target Rs. 48 - Religare Broking Ltd
Nestle India Ltd
BUY 25 AUG 1500 PUT Entry Range 18 – 20 Target 48 Stop Loss 24
Rationale
* NESTLEIND has witnessed profit booking from the recent swing high near the 1540-1550 zone, indicating weakening buying momentum and formation of a lower high on the daily chart.
* The stock has slipped below the 20-DEMA zone aligned with the 1500 mark, indicating corrective pressure. A sustained trading below this zone drag the prices towards the 1460 zone, near the 50-DEMA.
* Momentum indicators are turning cautious, with RSI declining towards the 50 mark while the MACD histogram has turned negative. On the daily timeframe MACD has witnessed a bearish crossover, supporting the corrective fall in near term.
* Overall, the near-term bias remains cautious to bearish below 1520 zone. So that any rise towards 1500-1520 zone attracts the selling pressure, while a break below 1,460 can accelerate the correction.
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