Key Events This Week
29 Dec 2025: Surge in open interest signals growing investor confidence
29 Dec 2025: Technical momentum shifts to bullish amid FMCG sector strength
2 Jan 2026: Week closes at Rs.1,279.60 (+0.63%)
29 Dec 2025: Surge in Open Interest Reflects Renewed Investor Confidence
On 29 December, Nestle India’s derivatives market saw a significant surge in open interest, rising 13.75% to 55,519 contracts from 48,809 previously. This increase accompanied a robust volume of 38,599 contracts, highlighting strong participation from both institutional and retail investors. The combined derivatives turnover reached ₹80,306.36 lakhs, with futures valued at approximately ₹79,450.61 lakhs and options at ₹17,003.51 crores, underscoring the stock’s liquidity and active trading interest.
The underlying share price closed at Rs.1,280.00, up 0.66% on the day, despite the broader Sensex declining 0.41%. This relative strength near the stock’s 52-week high of Rs.1,311.60 signals sustained bullish momentum. Delivery volumes surged to 11.2 lakh shares on 26 December, a 134.45% increase over the five-day average, indicating genuine investor conviction rather than speculative trading.
Trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day, Nestle India’s technical positioning supports the positive price action. The sharp rise in open interest and volume suggests investors are building long positions, anticipating further upside potential supported by the company’s strong fundamentals and sector tailwinds.
Technical Momentum Shifts Signal Bullish Outlook Amid FMCG Sector Strength
Also on 29 December, technical indicators for Nestle India shifted from mildly bullish to a more confident bullish stance. The stock traded at Rs.1,268.40 during the session, closing up 0.76% from Rs.1,258.85 the previous day, and reached an intraday high of Rs.1,276.80. This price action brought it closer to the critical resistance level of its 52-week high at Rs.1,310.50.
Moving averages aligned bullishly, with the stock trading above short- and medium-term averages, signalling sustained buying pressure. The monthly MACD turned bullish, while the weekly MACD remained mildly bearish, suggesting short-term consolidation but longer-term momentum improvement. The Know Sure Thing (KST) indicator was bullish on both weekly and monthly timeframes, reinforcing the positive momentum.
The Relative Strength Index (RSI) hovered neutrally, indicating the stock was neither overbought nor oversold, allowing room for further appreciation. Bollinger Bands on weekly and monthly charts were bullish, with price trending near the upper band, often a precursor to a breakout. On-Balance Volume (OBV) showed a mildly bullish trend monthly, though weekly volume patterns were mixed, warranting close monitoring.
Dow Theory assessments confirmed a mildly bullish stance on weekly and monthly scales, consistent with the broader technical signals. Year-to-date, Nestle India has delivered a strong 16.8% return, outperforming the Sensex’s 8.8%, while its one-year gains of 18.0% also surpass the benchmark’s 8.4%. These returns underscore the stock’s resilience and growth potential within the FMCG sector.
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30 Dec 2025: Minor Price Correction Amid Market Stability
On 30 December, Nestle India’s stock price declined by 0.48% to Rs.1,273.90, following the previous day’s gains. The volume dropped to 40,884 shares, reflecting a quieter session. The Sensex was largely flat, down 0.01%, indicating a broadly stable market environment. This minor pullback may represent short-term profit-taking after the surge in open interest and technical momentum observed the day before.
31 Dec 2025: Strong Rebound with Outperformance
The stock rebounded sharply on 31 December, rising 1.10% to close at Rs.1,287.95 on increased volume of 63,003 shares. This gain outpaced the Sensex’s 0.83% rise to 37,443.41, signalling renewed buying interest ahead of the new year. The price movement aligned with the bullish technical outlook and growing investor confidence from the derivatives market activity earlier in the week.
1 Jan 2026: Continued Gains on Low Volume
On the first trading day of 2026, Nestle India extended its gains by 0.53% to Rs.1,294.75, albeit on lower volume of 16,922 shares. The Sensex also advanced 0.14%, closing at 37,497.10. The stock’s steady rise near its weekly high reflected sustained positive sentiment, though the reduced volume suggests cautious participation as investors awaited further market direction.
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2 Jan 2026: Week Closes with a Slight Decline
The week ended on a cautious note with Nestle India’s stock falling 1.17% to Rs.1,279.60 on volume of 44,091 shares. Despite this decline, the Sensex gained 0.81% to close at 37,799.57, reflecting broader market strength. The stock’s pullback may be attributed to short-term profit-booking after reaching a weekly high of Rs.1,294.75 on 1 January. This correction does not negate the overall positive momentum established earlier in the week.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2025-12-29 | Rs.1,280.00 | +0.66% | 37,140.23 | -0.41% |
| 2025-12-30 | Rs.1,273.90 | -0.48% | 37,135.83 | -0.01% |
| 2025-12-31 | Rs.1,287.95 | +1.10% | 37,443.41 | +0.83% |
| 2026-01-01 | Rs.1,294.75 | +0.53% | 37,497.10 | +0.14% |
| 2026-01-02 | Rs.1,279.60 | -1.17% | 37,799.57 | +0.81% |
Key Takeaways
Positive Signals: The surge in open interest and volume on 29 December indicates growing investor confidence and a bullish market positioning. Technical momentum shifted decisively to bullish, supported by moving averages, monthly MACD, and Bollinger Bands, suggesting potential for further upside. The stock’s outperformance relative to the Sensex on key days highlights its resilience amid market volatility.
Cautionary Notes: The stock’s proximity to its 52-week high may invite profit-booking, as seen in the minor corrections on 30 December and 2 January. Weekly MACD remains mildly bearish, signalling possible short-term consolidation. Volume patterns on some days were subdued, indicating cautious participation. Investors should monitor open interest and volume trends closely to confirm sustained momentum.
Conclusion
Overall, Nestle India Ltd demonstrated a week of mixed but predominantly positive price action, closing with a 0.63% gain despite broader market strength lifting the Sensex by 1.35%. The notable surge in derivatives open interest and a clear shift in technical momentum underpin a bullish outlook for the stock within the FMCG sector. While short-term volatility and profit-taking remain possible near resistance levels, the combination of strong fundamentals, improved mojo score, and technical signals suggest that Nestle India continues to attract investor interest as a quality large-cap stock.
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