Nestle has been finding it difficult to add further weight to itself. The scrip rose from Rs 294 on December 12 to Rs 323. It touched a high of Rs 350. At present, it has a support at Rs 325.The sell signal came on at Rs 338 and continues to be on. This is because the scrip has been moving in a horizontal direction for quite some time. Therefore, there is not much scope of the scrip gaining sizeably over the present price. Under these circumstances, the best thing is to get out of this scrip and invest the money elsewhere.
In fact, the rise from Rs 250 since December last has been impressive, with volumes going up of late. This could indicate long-term investment. On the other hand, it would be perfectly sensible to book profit, and put the scrip on watch list. Pick it up a little lower.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
