Key Events This Week
23 Feb: Significant open interest surge amid positive momentum (Rs.1,315.50, +1.72%)
25 Feb: Technical momentum upgrade to bullish trend
26 Feb: MarketsMOJO upgrades rating to Buy on strong fundamentals and technicals
27 Feb: Technical momentum shifts to mildly bullish amid mixed signals (Rs.1,291.45, -2.02%)
23 February 2026: Surge in Open Interest Signals Renewed Investor Interest
On 23 February, Nestle India Ltd’s stock price rose sharply by 1.72% to close at Rs.1,315.50, outperforming the Sensex which gained 0.39%. This price appreciation coincided with a significant 16.47% increase in open interest in the derivatives segment, rising by 7,590 contracts to 53,686. Futures volume was robust at 28,352 contracts, with combined futures and options value reaching approximately ₹11,104 crores.
The rise in open interest alongside increased volume suggests fresh long positions being established, reflecting bullish sentiment among traders. The stock traded near its 52-week high of Rs.1,340.40, just 2.46% away, indicating market anticipation of a potential breakout or sustained upward momentum. Delivery volumes also surged, with 4.8 lakh shares delivered on 20 February, a 68.18% increase over the five-day average, signalling genuine accumulation rather than speculative trading.
Despite a recent downgrade to a Hold rating by MarketsMOJO on 19 February, the technical strength and market positioning on this day highlighted resilience and positive investor engagement.
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25 February 2026: Technical Momentum Upgrades to Bullish
By 25 February, Nestle India’s technical indicators showed a marked improvement, with the stock price edging up 0.19% to Rs.1,322.60. The technical grade was upgraded from Hold to Buy, reflecting a shift from mildly bullish to outright bullish momentum. Key indicators such as the Moving Average Convergence Divergence (MACD) were bullish on both weekly and monthly charts, supported by daily moving averages trending upwards.
The Relative Strength Index (RSI) remained neutral, indicating room for further appreciation without immediate risk of reversal. Bollinger Bands on the weekly timeframe confirmed a bullish stance, while monthly bands were mildly bullish. Some indicators, including the Know Sure Thing (KST) oscillator and Dow Theory, presented mixed or mildly bearish weekly signals, suggesting short-term caution amid longer-term optimism.
Overall, the technical upgrade signalled strengthening momentum, with the stock trading close to its 52-week high of Rs.1,339.85, reinforcing confidence in the medium-term uptrend.
26 February 2026: MarketsMOJO Upgrades Rating to Buy on Strong Fundamentals and Technicals
On 26 February, MarketsMOJO upgraded Nestle India Ltd’s rating from Hold to Buy, reflecting improved technical momentum and robust fundamental metrics. The stock closed at Rs.1,318.10, down 0.34% on the day but maintaining strength near all-time highs.
The upgrade was supported by a comprehensive reassessment of quality, valuation, financial trend, and technicals. Nestle India boasts an impressive average Return on Equity (ROE) of 66.55% and a conservative Debt to Equity ratio of 0.03, underscoring financial strength and low leverage. Institutional investors hold 21.91% of shares, signalling confidence from sophisticated market participants.
Despite a flat quarterly performance, the company’s long-term sales growth remains steady at 10.42% annually. Valuation metrics are elevated, with a Price to Book ratio of 57.6 and a PEG ratio of 60.9, reflecting premium pricing justified by market leadership but also cautioning on near-term earnings momentum.
Technical indicators such as MACD and Bollinger Bands supported the bullish upgrade, although some oscillators showed mixed signals. The stock’s market capitalisation of ₹2,55,309 crores and dominant FMCG sector position reinforce its appeal as a core holding.
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27 February 2026: Technical Momentum Softens to Mildly Bullish Amid Mixed Signals
On the final trading day of the week, Nestle India’s stock closed at Rs.1,291.45, down 2.02%, underperforming the Sensex which declined 1.16%. Technical momentum shifted from bullish to mildly bullish, reflecting a nuanced outlook. The weekly MACD turned mildly bearish while the monthly MACD remained bullish, indicating short-term consolidation amid longer-term strength.
RSI remained neutral, and daily moving averages continued to support the bulls. Bollinger Bands showed bullish momentum on the weekly scale and mildly bullish on the monthly scale. Mixed signals from the Know Sure Thing (KST) indicator and Dow Theory suggested indecision, while On-Balance Volume (OBV) readings were mildly bullish, hinting at underlying accumulation.
Despite the slight price dip, Nestle India’s relative performance remained strong, outperforming the Sensex over one week (+3.06% vs. -0.30%) and year-to-date (+2.30% vs. -3.49%). The MarketsMOJO score of 72.0 and upgraded Buy rating reinforce the stock’s medium-term appeal, though investors should monitor momentum indicators closely for further developments.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-23 | Rs.1,315.50 | +1.72% | 36,817.86 | +0.39% |
| 2026-02-24 | Rs.1,320.15 | +0.35% | 36,530.09 | -0.78% |
| 2026-02-25 | Rs.1,322.60 | +0.19% | 36,679.75 | +0.41% |
| 2026-02-26 | Rs.1,318.10 | -0.34% | 36,748.49 | +0.19% |
| 2026-02-27 | Rs.1,291.45 | -2.02% | 36,322.56 | -1.16% |
Key Takeaways
Positive Signals: Nestle India demonstrated resilience by outperforming the Sensex over the week despite ending slightly lower. The surge in open interest and volume early in the week indicated strong investor participation and fresh long positions. The technical momentum upgrade to bullish and the MarketsMOJO rating upgrade to Buy reflect confidence in the stock’s medium to long-term prospects. Robust fundamental metrics such as high ROE, low leverage, and strong institutional holding underpin the stock’s quality and stability.
Cautionary Notes: The stock’s valuation remains elevated, with a high Price to Book and PEG ratio, suggesting premium pricing that may limit near-term upside. Mixed technical signals towards the week’s end, including mildly bearish weekly MACD and KST indicators, point to potential short-term consolidation or volatility. The flat quarterly financial performance highlights the need for monitoring upcoming earnings for signs of renewed growth momentum.
Conclusion
Nestle India Ltd’s week was characterised by a strong start with increased market participation and technical upgrades, followed by a slight pullback amid mixed momentum signals. The stock’s ability to outperform the broader market despite a modest weekly decline underscores its defensive qualities and investor appeal. The MarketsMOJO upgrade to Buy, supported by solid fundamentals and improving technicals, suggests a positive medium-term outlook. However, elevated valuations and short-term technical caution advise a measured approach. Investors should continue to monitor momentum indicators and quarterly results to gauge the sustainability of the current trend.
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