Our Cash Segment April month profit (till date) has crossed 70%++. Calculation done as per the first target basis. Package price only Rs 7,000 + GST per month. Hurry! Subscribe it today and get profitable research calls. For more details call your RM or Call us on +91-7065111166.
Home » Chart Idea – Hindustan Unilever Ltd. After successful rally, is it the time to short?
Chart Ideas Equity Future

Chart Idea – Hindustan Unilever Ltd. After successful rally, is it the time to short?

Hindustan Unilever


HINDUSTAN UNILEVER LIMITED

 

Overview:

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.

Hindustan Unilever Open Interest
Hindustan Unilever Open Interest Summary

 

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.

Hindustan Unilever Closing Price Vs Open Interest Data
HUL – Closing Price Vs Open Interest Data

 

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.

Hindustan Unilever Delivery Data
Hindustan Unilever Delivery Volume Data

 

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.

HUL Option Chain Analysis
Hindustan Unilever Option Chain Analysis

 

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

Hindustan Unilever Future Price Movement Chart
Hindustan Unilever Future Price Movement

 

Let’s analyze this also with Technical Chart

 

Hindustan Unilever Technical chart
Technical chart of Hindustan Unilever
 

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.

Trade Recommendations

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

HUL Call Update

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. 

 

 

Stock Market Update on WhatsApp

Our Recommendations

Get FREE Market Updates!

Stock Market WhatsApp Broadcast
Read in your native language.
Open chat
Get Market Updates on your WhatsApp