HINDUSTAN UNILEVER LIMITED
Hindustan Unilever Limited (HUL) is India’s largest Fast Moving Consumer Goods Company with a heritage of over 80 years in India.
HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents, and shampoos amongst others with over 700 million Indian consumers using its products.
After analyzing this stock data we came to know that:
The stock is making higher highs from the last couple of weeks, but in the last few days, the stock is not taking part in a market rally and showing weakness from the upper level.
The data of the stock is getting more bearish from the last couple of trading sessions.
HUL Rollover percentage is also increasing from the last trading sessions along with an increase in cumulative OI which indicates bearishness in this stock will continue as marked in the given picture also.
Volatility in the stock is also going lower and increasing in COI along with a decrease in price which indicates bearish momentum in this stock as given in the image.
On 30th April 2020 delivery in this stock i.e. of Rs. 780.12 Cr which is more than the 5 days average delivery i.e. of Rs. 311.04 Cr which means there is delivery based selling happening in this stock as marked in the given image.
If we talk about Option Chain, the highest OI built up in 2200CE (i.e. 2,34,600) and 2000 PE (i.e. 1,94,000) which is suggesting that big players are betting on the bearish side in this stock as a mark in the given image.
Short Built-up is increasing in next month as well as in the far month and put-call ratio continuously decreasing, which suggests that big players are betting on the downside of this stock. As shown in the below chart
Let’s analyze this also with Technical Chart
After a sharp downside rally, the stock is not taking part in market movement. The stock is in a downtrend with the supportive volume on the daily chart.
RSI (Relative Strength Index) and MACD (Moving average conversion and diversion) also show bearish momentum in this stock.
Traders can sell this stock below 2130 levels with the stop-loss above 2200 level for the downside target of 1910 levels in the next 8—10 trading sessions.
|07th May 2020
Our Chart Idea recommendation HUL hit our exact target of 1910 (made low 1908.50).
Profit booked more than 65,000+ per lot or 10% return on single lot.
Not only this after hitting exactly our target it took U-turn and again started moving upside.
‘Power of levels and Option chain analysis nothing else.
Stay update for more chart idea updates on the weekend.