Hindustan Unilever Declines 4.89%: 5 Key Factors Behind the Weekly Sell-Off

9 February: Mixed Technical Signals Amid Mild Momentum Shift

Hindustan Unilever began the week on a cautiously optimistic note, closing at Rs.2,433.95, up 0.42% on the day. Despite this gain, technical indicators presented a complex picture. The stock showed a transition from bearish to mildly bearish momentum, with mixed signals from MACD, RSI, and moving averages. While the weekly MACD hinted at some upward momentum, the monthly MACD remained bearish, signalling longer-term pressure. The stock traded within a consolidation range, comfortably above its 52-week low but well below its 52-week high of Rs.2,779.70.

Volume was moderate at 72,213 shares, and the stock outperformed the Sensex’s 1.04% gain on the day, suggesting some defensive strength amid sector headwinds. However, the overall technical stance remained cautious, with daily moving averages still mildly bearish and momentum oscillators indicating a sideways trend.

12 February: Sharp Intraday Decline Amid Heavy Trading and Derivatives Activity

The stock faced significant selling pressure on 12 February, closing at Rs.2,410.05, down 2.13%. Intraday, it hit a low of Rs.2,382, marking a 3.27% drop from the previous close. This decline followed four consecutive days of gains, signalling a shift in short-term momentum. The stock underperformed both the FMCG sector, which fell 0.90%, and the Sensex, which declined 0.44%.

Trading volume surged to 201,082 shares, with a total turnover of ₹584.33 crores, making HUL one of the most actively traded stocks by value. Despite the high liquidity, the weighted average price was closer to the day’s low, indicating selling dominance. The stock traded below its 5-day, 20-day, 100-day, and 200-day moving averages, though it remained above the 50-day average, reflecting mixed technical support.

Derivatives activity was notable, with heavy call option volumes at the ₹2,500 strike price and a surge in put option contracts at the ₹2,400 strike price, both expiring on 24 February. Open interest rose sharply by 15%, signalling increased market positioning and heightened volatility expectations. The divergence between bullish call option activity and bearish put option interest highlighted a complex investor sentiment, with speculative optimism in options contrasting with caution in the cash market.

13 February: Continued Price Pressure and Mildly Bearish Technical Shift

On the final trading day of the week, Hindustan Unilever’s shares declined further by 4.35%, closing at Rs.2,305.20. The stock hit an intraday low of Rs.2,338.05, marking a 2.99% drop from the previous close and extending the two-day loss to nearly 5%. This underperformance was more pronounced than the FMCG sector’s 1.58% decline and the Sensex’s 0.84% fall.

Technically, the stock moved into a mildly bearish phase, trading below all key moving averages (5-day, 20-day, 50-day, 100-day, and 200-day). Momentum indicators such as MACD showed a bearish monthly trend despite a mildly bullish weekly signal, while RSI remained neutral. Bollinger Bands suggested increased volatility with a downside bias. On-Balance Volume and Dow Theory analyses also reflected mixed signals, with short-term accumulation offset by longer-term selling pressure.

The stock’s Mojo Score remained at 42.0, categorised as a Sell, reflecting the cautious outlook amid deteriorating technical conditions and subdued investor sentiment. The downgrade from Hold in December 2025 underscores the challenges faced by HUL in sustaining upward momentum.

Daily Price Performance vs Sensex

Key Takeaways

1. Mixed Technical Signals: The week began with mildly bearish momentum but some short-term bullish indicators, reflecting a stock in consolidation. However, the shift to a more pronounced bearish stance by week-end signals caution.

2. Heavy Trading and Liquidity: High volumes and turnover, especially on 12 February, underline strong market interest but also significant selling pressure, with the weighted average price closer to intraday lows.

3. Divergent Derivatives Activity: The simultaneous surge in call and put option volumes at nearby strike prices indicates a market divided between speculative optimism and hedging against downside risk.

4. Underperformance vs Sensex and Sector: HUL lagged both the benchmark index and FMCG sector consistently, highlighting stock-specific pressures amid broader market volatility.

5. Declining Investor Participation: Delivery volumes fell slightly, suggesting reduced conviction among long-term holders and possible profit-booking or cautious repositioning.

6. Mojo Score and Rating: The downgrade to a Sell rating with a Mojo Score of 42.0 reflects deteriorating technical and fundamental outlooks, reinforcing the need for prudence.

7. Technical Support Levels: The stock’s breach below key moving averages and support levels around Rs.2,350 raises the risk of further downside unless a stabilising catalyst emerges.

Conclusion

Hindustan Unilever Ltd’s performance in the week ending 13 February 2026 was marked by a sharp 4.89% decline, significantly underperforming the Sensex’s modest 0.54% fall. The stock’s trajectory was shaped by a complex interplay of mixed technical signals, heavy trading volumes, and contrasting derivatives market activity. While early-week gains suggested tentative optimism, the latter half of the week saw intensified selling pressure and a shift to a mildly bearish technical stance.

The surge in both call and put option volumes ahead of the 24 February expiry highlights a market grappling with uncertainty, balancing speculative bets with protective hedging. The decline in delivery volumes and the downgrade to a Sell rating further underscore the cautious sentiment prevailing among investors.

Given these dynamics, Hindustan Unilever faces immediate headwinds with key support levels under pressure. Investors and traders should closely monitor price action and technical indicators in the coming days to gauge whether the stock can stabilise or if further downside risks materialise. The stock’s large-cap status and liquidity provide some resilience, but the current environment calls for measured exposure and vigilant risk management.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →