HINDUNILVR - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.4

📉 Hindustan Unilever (HINDUNILVR) is currently in a consolidation phase with weakening momentum and bearish technical indicators.

📊 Technical Analysis

• Trend Status: Consolidating — price is range-bound and struggling to hold above key moving averages.
• Moving Averages: Price ₹2,460 is below 50-DMA (₹2,534) and slightly below 200-DMA (₹2,475), indicating short-term weakness.
• RSI (36.9): Near oversold zone, suggesting limited momentum and potential for a technical bounce.
• MACD (-17.5): Bearish crossover, confirming downward pressure.
• Bollinger Bands: Price near lower band, indicating possible support around ₹2,440–₹2,460.
• Volume: Current volume (15.1L) is below weekly average (18.0L), showing reduced participation.

🎯 Entry & Exit Zones

• Support Levels: ₹2,440, ₹2,400
• Resistance Levels: ₹2,534 (50-DMA), ₹2,580, ₹2,640
• Optimal Entry: ₹2,440–₹2,460 (near support)
• Exit Target: ₹2,580–₹2,640 (near resistance)

✅ Positive

• Strong ROCE (27.6%) and ROE (20.6%) reflect excellent operational efficiency.
• Low debt-to-equity ratio (0.03) indicates financial stability.
• EPS of ₹46.5 and consistent dividend yield (1.74%) support long-term value.

⚠️ Limitation

• High P/E (54.9) and PEG (10.4) suggest overvaluation relative to growth.
• MACD and RSI show weakening momentum, limiting short-term upside.
• Stock trading below key moving averages, signaling short-term bearishness.

📉 Company Negative News

• Quarterly PAT declined from ₹2,839 Cr to ₹2,551 Cr, indicating margin pressure.
• DII holdings dropped by 0.37%, reflecting cautious domestic sentiment.

📈 Company Positive News

• FII holdings increased by 0.61%, showing foreign investor confidence.
• Strong brand portfolio and leadership in FMCG sector remain long-term strengths.

🏭 Industry

• FMCG sector remains resilient with steady demand despite macroeconomic headwinds.
• Industry P/E (51.7) is slightly lower than HINDUNILVR’s, suggesting premium valuation.

🧾 Conclusion

• HINDUNILVR is consolidating with bearish momentum and valuation concerns.
• Short-term traders may consider entry near ₹2,440 with targets around ₹2,580–₹2,640.
• Long-term investors should monitor earnings recovery and valuation metrics closely.