Stock of the week - Hindustan Unilever Limited For Target Rs. 3197 By GEPL Capital
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HINDUNILVR
Observation
* On the long term charts we can see that HINDUNILVR has been in a strong up trend since 2016. However, since 2019 the stock has been moving higher in a choppy manner (Marked by the rising trend line).
* In the last week, we have seen that the stock gained momentum and has given a ‘Descending Triangle pattern’ breakout with volume confirmation on the weekly charts indicating that the stock is ready for the next Bull run.
* On the medium term time frame we can see that the 20 week SMA has been acting as a support level for the past 13 weeks, emphasizing on the underlying bullishness in the trend.
* On the indicator front, RSI plotted on the weekly time frame can be seen placed above the 50 mark and is currently moving higher towards the overbought level after forming a bullish hinge near the 50 mark, indicating presence of momentum in the bullish trend.
* Going ahead the 2614 (April 2020 high) will act as a resistance level, if this level is breached we can expect the prices to test 3034 and 3342 (61.8% and 78.6% extension level of the rise from 783-2614 projected from 1902)
* Our bullish view will be negated if the prices move below the 2300 (3 month low).
Inference & Expectations
* HINDUNILVR from a long term perspective seems to be in a strong bullish phase.
* The technical parameters mentioned above state that the stock is gaining momentum.
* We expect the bullish momentum to take the prices higher towards the 2614 mark immediately.
* If the level of 2614 is breached we can expect the prices to move higher towards the 3034 and 3342 eventually.
* Our bullish view will be negated of the prices breach below the 2300 mark.
* One can Buy HINDUNILVR at current levels for the target of 3034 and 3342 levels with a strict stop loss of 2300 on closing basis.
Buy Hindustan Unilever Limited LTP 2482.90 TGT 3197 SL 2300
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