Stock Radar | HUL a good buy on dips stock for a target of Rs 2,300 in near term: Sumeet Bagadia

Hindustan Unilever Ltd, part of the diversified FMCG space, managed to outperform Nifty50 in the short term and the chart structure suggests that it is a perfect buy on dips stock for a target of Rs 2,300 in the next couple of weeks, say experts.

The stock with a market capitalization of more than Rs 5 lakh cr hit a 52-week high of Rs 2,859 back in September 2021, but the trend went sideways post that.

The stock rose by about 2 per cent in a month compared to a nearly 10 per cent fall seen in Nifty50 in the same period.


Experts see smart money moving towards defensives which makes HUL a good stock to buy on dips towards Rs 2,180 levels, suggest experts.

The stock closed 2.4 per cent higher on Friday at Rs 2,194 on the BSE.

The daily chart suggests that prices have rebounded from their lower levels and are sustaining above Rs 2,150 which is an important level.

It is trading well above the short-term moving averages of 5, 10, 20, and 50-DMAs. However, it is trading below 100, and 200-DMAs.

The stock price is moving in a higher high and higher low pattern, confirming bullishness in the price action.


“The stock is sustaining with the support of 50-daily moving averages. Indicators like RSI and MACD are indicating positive cross-over in daily time frame,” Sumeet Bagadia, Executive Director, Choice Broking, said.

“HUL prices are also sustaining above the middle band of Bollinger band which is again a positive sign for the stock,” he added.

Read more about Bollinger Bands here

Bagadia further added that any dip or correction in prices till Rs 2,180 levels should be used as buying opportunity for an upside target of Rs 2,300 and Rs 2,380 levels in the next couple of weeks with a stop loss to be placed below Rs 2,100 levels.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)