HINDUNILVR - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.5

📊 Chart Patterns: Hindustan Unilever is trading below both its 50 DMA (2,345 ₹) and 200 DMA (2,355 ₹), showing short-term weakness. Current price (2,282 ₹) is near support at 2,250–2,270 ₹, with resistance around 2,340–2,360 ₹.

📉 Moving Averages: Price below both averages indicates bearish sentiment. Sustaining above 2,345 ₹ is needed to regain strength.

📉 RSI: At 36.6, RSI suggests the stock is oversold, indicating potential rebound opportunities.

📉 MACD: Negative at -21.6, confirming bearish momentum and signaling caution for short-term traders.

📊 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible short-term bounce.

📈 Volume Trends: Current volume (13,44,632) is slightly above average weekly volume (12,03,799), showing moderate participation despite weakness.

📌 Short-term Momentum Signals: Weak momentum with oversold RSI. A bounce is possible if price holds above 2,250 ₹. Breakout above 2,345–2,360 ₹ could trigger recovery toward 2,400 ₹.

🎯 Optimal Entry Zone: 2,250–2,270 ₹ (near support).

🎯 Optimal Exit Zone: 2,340–2,360 ₹ (near resistance).

📉 Trend Status: The stock is consolidating with a bearish bias, awaiting reversal signals.

Positive

• Strong ROCE (27.6%) and ROE (20.6%) reflect efficient capital utilization.
• Low debt-to-equity ratio (0.03) ensures financial stability.
• Dividend yield of 1.89% provides steady shareholder returns.
• EPS of 46.5 ₹ highlights consistent earnings power.

Limitation

• High P/E (51.0) compared to industry PE (45.6) suggests overvaluation.
• PEG ratio of 9.60 indicates limited growth relative to valuation.
• Stock trading below both 50 DMA and 200 DMA shows weak technical strength.

Company Negative News

• PAT declined (2,551 Cr. vs 2,839 Cr.), showing earnings pressure.
• DII holding decreased by -0.37%, reflecting reduced domestic institutional support.

Company Positive News

• FII holding increased by 0.61%, showing foreign investor confidence.
• Strong fundamentals with high ROCE and ROE despite short-term earnings dip.

Industry

• Industry PE at 45.6 is lower than Hindustan Unilever’s PE (51.0), suggesting relative overvaluation.
• FMCG sector outlook remains stable with steady demand, though margin pressures persist.

Conclusion

⚖️ Hindustan Unilever is fundamentally strong with high ROCE/ROE and low debt, but technically weak in the short term. The stock is consolidating near support with bearish signals from RSI and MACD. Entry is favorable near 2,250–2,270 ₹ with cautious exit around 2,340–2,360 ₹. Long-term investors may hold for stability, while short-term traders should wait for confirmation above 2,345 ₹.