Q1 impact: Hindustan Unilever can rally to Rs 3,000-mark, indicates chart

The HUL chart has seen breakout of the 'Inverse Head and Shoulder' after the stock conquered the Rs 2,400-level, thus indicating an upside target of Rs 3,000 in the medium-term.

The oldest and one of the largest Fast Moving Consumer Goods (FMCG) company, Hindustan Unilever beat street estimates by recording a 13.5 per cent yearly growth in net profit at Rs 2,391 crore for the June quarter.

Revenue too on a consolidated basis were above estimates. It rose 19.6 per cent YoY to Rs 14,357 crore in Q1FY23 as against Rs 12,004 crore a year ago. READ MORE

Technically, here's how the stock can perform in the near term:

Hindustan Unilever Ltd (HINDUNILVR)

Likely target: Rs 3,000

Upside potential: 15%

Shares of Hindustan Unilever are just 9 per cent shy from its historic peak of Rs 2,833.50. And the present chart formation displays a move towards it. The recent " Golden Cross" breakout at Rs 2,600 has marked a new beginning for the stock.

In addition, the “Inverse Head and Shoulder”, pattern on the daily chart, which broke out after the stock conquered the Rs 2,400 level, indicates an upside target of Rs 3,000 in the medium-term. So far, the stock has rallied 8 per cent from the neckline breakout and continues to log robust volumes in favour of the bulls. 

The stock is seen gradually building a lower support base and absorbing all the selling pressure as it progresses upward. 

On an immediate scale, the closing basis support for the stock exists at Rs 2,450 with the Relative Strength Index (RSI) strongly backing the upside bias. While the technical oscillator RSI, which trades in the overbought zone, the price action is not letting any sell-off pull the stock price down. CLICK HERE FOR THE CHART