HUL Breaks Out With Volumes: Stock Could Rally Past ₹2,650, Says SEBI RA Vijay Kumar Gupta

Hindustan Unilever (HUL) has broken out from its prolonged consolidation phase, backed by a surge in volume and bullish momentum indicators.

On the Ichimoku chart, the price has decisively moved above the Kumo (cloud), a strong bullish signal. The Tenkan-sen and Kijun-sen have formed a bullish crossover, while the Chikou Span is also positioned above the price line, confirming strength in the prevailing trend, said SEBI-registered analyst Vijay Kumar Gupta.

Despite trading marginally lower at ₹2,510 on Monday, the chart structures overall remain bullish. The stock has rallied on a significant volume spike of 7.24 million shares, significantly over its daily average of 1.76 million.

Indicators like commodity channel index (CCI) have surged to +245, highlighting strong buying interest, though suggesting short-term overextension. Meanwhile, the on-balance volume (OBV) is rising with price action, confirming that the rally is volume-supported with no signs of distribution, Gupta said.

The analyst sees resistance in the ₹2,550 - ₹2,580 zone, and immediate support at ₹2,400, the breakout level. A healthy retest zone is seen around ₹2,390 - ₹2,410, previously acting as resistance within the Ichimoku cloud. If momentum sustains, the next bullish target could stretch to above ₹2,650.

New positions can be taken up near ₹2,450 or on a retest of the ₹2,410 level, he said, while recommending a stop loss below ₹2,400. However, caution is warranted in the near term as CCI and relative strength index (RSI) suggest the stock may consolidate before its next leg higher.

Retail sentiment on Stocktwits turned ‘bearish’ from ‘neutral’ a day ago.

Hindustan Unilever shares have gained nearly 8% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on