Hindustan Unilever Ltd Declines 1.59% Amid Bearish Momentum and Rising Open Interest

27 January 2026: Week Opens with Mild Decline Amid Sensex Gains

Hindustan Unilever Ltd commenced the week at Rs.2,400.30, registering a 0.49% decline from the previous close. This movement was in stark contrast to the Sensex, which advanced 0.50% to 35,786.84. The stock’s volume stood at 53,815 shares, indicating moderate trading activity. The divergence between the stock’s performance and the broader market hinted at early signs of weakness in the company’s shares despite positive market sentiment.

28 January 2026: Open Interest Surges Amid Bearish Price Action

On 28 January, Hindustan Unilever’s price fell further by 0.83% to close at Rs.2,380.35, underperforming the Sensex’s 1.12% gain. The derivatives market saw a significant 10.14% increase in open interest, rising from 55,514 to 61,144 contracts. This surge accompanied a total traded volume of 30,469 contracts, with futures and options segments reflecting substantial liquidity and investor engagement.

The stock’s intraday low touched Rs.2,340.60, and it traded below all key moving averages, signalling a bearish trend across multiple timeframes. The weighted average price of traded volumes skewed towards the lower end, indicating selling pressure. Delivery volumes rose sharply by 46.19% to 11.51 lakh shares, suggesting active investor participation amid the price decline.

This combination of rising open interest and falling prices typically indicates fresh short positions or put option buying, reflecting increased bearish bets. The stock’s Mojo Score stood at 42.0 with a Sell rating, confirming deteriorating fundamentals and technical outlook.

29 January 2026: Technical Indicators Confirm Bearish Momentum

The downward trend continued on 29 January as the stock declined 1.21% to Rs.2,351.65, while the Sensex gained a modest 0.22% to 36,266.59. Volume increased to 97,406 shares, reflecting heightened trading activity amid the bearish momentum.

Technical indicators deteriorated further with the Moving Average Convergence Divergence (MACD) remaining bearish on weekly and monthly timeframes. The stock traded below all key moving averages, reinforcing the negative trend. The Relative Strength Index (RSI) showed a bullish weekly reading but a neutral monthly stance, indicating short-term oversold conditions amid a broader downtrend.

Bollinger Bands and the Know Sure Thing (KST) oscillator also signalled bearish momentum, with weekly indicators more negative than monthly ones. On-Balance Volume (OBV) was mildly bearish weekly and neutral monthly, suggesting volume trends did not support price advances. The stock’s 52-week high of Rs.2,779.70 remained distant, underscoring the consolidation with downward bias.

30 January 2026: Slight Recovery but Weekly Close Remains Negative

On the final trading day of the week, Hindustan Unilever’s price rebounded 0.94% to Rs.2,373.65, partially recovering from the prior declines. The Sensex, however, slipped 0.22% to 36,185.03. The stock’s volume dropped to 33,200 shares, indicating reduced trading activity amid the slight bounce.

Despite this uptick, the weekly close reflected a 1.59% loss from the previous Friday’s close. The Mojo Score further declined to 37.0 with a Sell rating, downgraded from Hold on 3 December 2025. Market Cap Grade remained at 1, signalling relatively low market capitalisation strength compared to peers.

The technical landscape remained challenging, with bearish MACD and moving averages dominating. The divergence between short-term bullish RSI and longer-term neutral readings suggested potential for temporary rebounds but no reversal of the broader downtrend without fundamental catalysts.

Daily Price Comparison: Hindustan Unilever Ltd vs Sensex

Key Takeaways

Bearish Technical Momentum: The stock’s consistent trading below key moving averages and bearish MACD across weekly and monthly timeframes indicate sustained downward pressure. Despite short-term RSI and KST oscillators showing some bullish signals, the overall technical outlook remains negative.

Derivatives Market Activity: The sharp 10.14% increase in open interest on 28 January amid falling prices suggests growing bearish bets, including fresh short positions and put option buying. This heightened derivatives activity reflects investor caution and hedging strategies.

Underperformance vs Sensex: Hindustan Unilever declined 1.59% over the week while the Sensex gained 1.62%, highlighting relative weakness in the stock despite a broadly positive market environment.

Volume and Liquidity: Rising delivery volumes on 27 January and increased trading volumes on 29 January indicate active investor participation during the price decline. Liquidity remains sufficient for sizeable trades, supporting institutional and retail activity.

Rating Downgrade: The downgrade to a Sell rating with a Mojo Score of 37.0 underscores deteriorating fundamentals and technical outlook, reinforcing the cautious stance among market participants.

Conclusion

Hindustan Unilever Ltd’s performance during the week ending 30 January 2026 was marked by a clear shift towards bearish momentum, driven by technical deterioration and increased bearish positioning in the derivatives market. The stock’s 1.59% decline contrasted with the Sensex’s 1.62% gain, signalling relative weakness amid a challenging environment for the FMCG giant.

Investors should remain vigilant to the stock’s ability to hold near-term support levels around Rs.2,350 and monitor volume and momentum indicators for signs of reversal. The current technical and fundamental signals advise caution, with the risk of further downside persisting until a sustained improvement in outlook is evident.

While Hindustan Unilever’s large-cap stature and sector leadership provide some resilience, the prevailing market dynamics suggest a cautious approach in the near term.

Unlock special upgrade rates for a limited period. Start Saving Now →