HUL may hit a target of Rs 500 in short term: Sharekhan

By Devang Shah - Portfolio Manager (Pro Tech - PMS) - Sharekhan Ltd

HUL today finally broken out of its bullish triangle consolidation pattern on the upside with strong volumes. The company came out with very good results that surpassed street expectation.

The stock is trading at its all time high and managed to close near its day's high at Rs 477 at the end of trading session. The stcok is forming higher top lower bottom kind of bullish formation pattern as per chart attached. Technically, overall trend remains on the upside till this bullish formation is intact.

HUL is trading in parallel channel formation both in short term & medium term as per chart attached. It has target of Rs 500 in immediate short term. If the stock sustain levels above Rs 500, it will lead to further rally towards next target of Rs 660 in medium to long term.

One can BUY & Trail with Stop loss of Rs 435 in short to medium term and use every opportunity to buy such defensive stock at every decline till it reverses.