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The stock of Hindustan Unilever has been volatile since the beginning of 2021. Nevertheless, the year-to-date return is a little over one per cent i.e., largely flat so far. Although it made a low of ₹2,120 during the final week of February, the stock recovered from those levels and considering the price action since April, it has largely been trading in a broad sideways trend with its boundaries at ₹2,320 and ₹2,500.
In early August, the stock bounced off the lower band of the consolidation phase i.e., ₹2,320, and last week, it closed above an important level of ₹2,400. Going by how the stock has been moving over the past few months, it is likely to appreciate towards ₹2,500 in the coming days. Notably, the price is now above both 21- and 50-day moving averages. Besides, the relative strength index (RSI) entered the bullish zone last week and the moving average convergence divergence (MACD) is now turning its trajectory upward. Hence, traders can be bullish and buy with stop-loss at ₹2,395 for a target of ₹2,480.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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