Buy Hindustan Unilver for target of Rs 302:IIFL

MUMBAI: IIFL is of the view that Hindustan Unilever has been sustaining above neckline of bullish inverted head and shoulder pattern. It has advised traders to buy the stock for target of Rs 302.

“HUL on the weekly chart has been sustaining above neckline of bullish inverted head and shoulder pattern after its surpassed resistance of Rs 268 with volumes doubling in comparative with its earlier week. As amplitude of such structure opens scope for 7-8% upside from current levels and being defensive bet, it is likely to attract significant buying interest.

On weekly chart, RSI is also forming higher tops and higher bottom thus corroborating an uptrend. With right shoulder taking a shape of rounding saucer and has been able to cement its position above the trough of left shoulder; such a formation conceives extreme bullishness and providing better risk reward ratio from current levels. We advise buying stock in the range of Rs 280-284 for delivery with stop-loss of Rs 275.5 for target of Rs 302,” the report said.

Note: Trading call valid for 1-3 trading sessions.