More Stories

Informist, Thursday, Oct. 16, 2025

 

By Akash Mandal

 

MUMBAI – Nestle India may continue its positive trajectory in the near term and test the INR 1,300-INR 1,320 levels, with robust volume growth and fall in commodity prices likely to buoy the company's future earnings. Traders added long bets at the 1300 and 1340 call strikes, with the 1300 strike seeing the highest open interest addition and concentration on the call side, the stock's options chain showed. 

 

Shares of the company, which were trading flat, surged over 5?ter the company reported its September quarter earnings and ended the day 4.5% higher at INR 1,276.60. The fast-moving consumer goods major reported the net profit of INR 7.53 billion in the reporting quarter, down 24% on year but higher than the Street's view of INR 7.23 billion. Its top line rose 11% on year, the fastest pace of growth in nine quarters, to INR 56.44 billion in Jul-Sept and comfortably surpassed analysts' estimates of INR 53.37 billion. This was led by volume growth, the company said in a release.

 

Investors are also likely to be comforted by the management's commentary on raw material prices, a factor that analysts had expected to hit the company's profits in the reporting quarter. The global supply and demand for cocoa are projected to balance, primarily due to a correction in demand over the past two years, the company said in its press release. Analysts had expected the company's margins to be under pressure in the reporting quarter due to high coffee procurement prices. 

 

Traders sold put options across the chain, with out-of-the-money strikes at 1200-1270 seeing signifant open interest addition. The highest open interest concentration was by far at the 1200 strike. There was buying across strikes on the call side, further signifying a bullish sentiment on the stock. Out-of-the-money strikes between 1280-1340 saw the most open interest addition during the session. The highest open interest concentration was at the 1300 strike. 

 

"Today, we have seen a decent amount of put writing at multiple strikes in Nestle...along with some call additions at 1300 strikes," said Vipin Kumar, assistant vice-president of derivatives and technical at Globe Capital Market. "Both its (Nestle's) chart structure as well as the options data indicating towards the continuation of up move in near term with immediate resistance around 1320 spot levels," he added. 

 

The benchmark indices also continued their positive trajectory, with the Nifty 50 ending 1% higher at 25585.30 points. Traders added bullish bets on the call side across the Nifty 50's derivatives chain. They also sold almost entirely across the put side, barring some deep out-of-the-money strikes between 22650-23650. 

 

--Nifty 50 October closed at 25648.40, up 188.40 points; 63.10-point premium to the spot index

--Nifty 50 November closed at 25775.00, up 226.40 points; 189.70-point premium to the spot index

--Nifty 50 December closed at 25931.60, up 218.00 points; 346.30-point premium to the spot index

 

Eternal, Axis Bank, HDFC Bank, ICICI Bank, Infosys, Reliance Industries, RBL Bank, Kotak Mahindra Bank, BSE, Nestle India, HDFC Asset Management Co., State Bank of India, Multi Commodity Exchange of India, KEI Industries, and Bajaj Finance were the most active underlying stocks Wednesday.  End 

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.