Buy or Sell? This MNC FMCG stock trades at 7-yr support; can fall up to 22%

Nestle India share price has tumbled nearly 23% in the last 4 months, and now trades 5% away from its key long-term support on the monthly chart; the stock has held since November 2017.

Nestle India, is a subsidiary of Switzerland-based Nestle S.A., hence is considered as an MNC (Multinational Corporation) stock in India. The company deals in fast moving consumer goods (FMCG) with prominently known products such as - Nestle Maggi, Milkmaid, Milkybar, KitKat and other chocolates etc. Nestle has been a profit-making company and has given healthy dividend payouts in the past.  Last year on the bourses, the BSE and NSE, the stock has delivered a negative return of 17.2 per cent. However, on the long-term period, the stock has delivered healthy gains, up 57.7 per cent in the last 5 years, up 286 per cent in the last 10 years and a whopping 914 per cent surge in the last 15 years.  Since January, 2024, the stock has been trading ex-stock split, in the 10:1 ratio - the stock face value of Rs 10 was brought down to Re 1. The company has paid a dividend of Rs 18.25 per share in the last year, and in the preceding 7 years, the dividend payout stands at Rs 1,353 per share.  The company is scheduled to announce its December quarter results and an interim dividend on Friday, January 31, 2025.  In the present scenario, Nestle India stock is down over 22 per cent in the last 4 months. The stock at present is seen headed towards the super trend line support on the monthly scale, which stands at Rs 2,033 - i.e. merely 5 per cent away from present levels.    Historical chart shows that Nestle has held this key support level since the breakout in November 2017; post which the stock has rallied 237 per cent. Can the stock sustain above this key support, and in case it does not, how much more can it fall?  Here's a technical outlook on Nestle India share price, with key support and resistance levels to watch out for.  Nestle India  Current Price: Rs 2,148  Downside Risk: 22.3%  Support: Rs 2,137; Rs 2,072; Rs 2,033; Rs 1,880; Rs 1,790  Resistance: Rs 2,250; Rs 2,315; Rs 2,417  On the daily scale, the Nestle stock is seen trading close to its super trend line support, which stands at Rs 2,137. As long as this support is held, the stock can consolidate and attempt a pullback towards Rs 2,200 and Rs 2,250 levels.  On the downside, the stock seems on course to test the key monthly support at Rs 2,033; with interim support placed at Rs 2,137 and Rs 2,072. Break of the long-term support can potentially signal fresh downside for the stock. As such, the stock could slide all the way towards Rs 1,670 levels; with intermediate support anticipated around Rs 1,880 and Rs 1,790 levels. CLICK HERE FOR THE CHART  The longer-term chart, however, shows that the overall bias for the stock is likely to remain negative as long as the stock trades below Rs 2,417; with interim resistance placed at Rs 2,315. The stock will need to break and trade consistently above these two key hurdles in order to revive the sentiment at the counter.