Technical Analysis – Hindustan Unilever
Hindustan Unilever (Rs 219.6)
HUL had been under the bear’s hammer right from the onset of last week. The stock reversed lower from the intra-week peak of Rs 244.3 to end almost nine per cent lower.
The ostensible reason for this decline is the ongoing marketing war with Procter and Gamble though the P&G stock is moving insouciantly sideways.
The long-term trend in this stock continues to be up. But HUL has strong long-term resistance in the band between Rs 280 and Rs 300 where it peaked in May 2006 and again in July and October 2009.
It is currently in a serious decline from the October 2009 peak of Rs 295. Immediate target for this decline is Rs 215. That is the stop with which medium-term investors should hold this stock.
Key long-term support for the stock is however between Rs 170 and Rs 180 and investors with a long-term horizon can accumulate the stock as it nears this band.
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hul is moving