Hindustan Unilever Ltd Faces Bearish Momentum Amid Technical Downgrade

Technical Trend Overview and Price Movement

As of 6 Feb 2026, HUL’s share price closed at ₹2,354.00, down 0.73% from the previous close of ₹2,371.35. The intraday range saw a high of ₹2,423.85 and a low of ₹2,351.30, reflecting volatility within a bearish context. The stock remains below its 52-week high of ₹2,779.70 and above its 52-week low of ₹2,136.00, indicating a broad trading range but with recent downward pressure.

The technical trend has shifted from mildly bearish to outright bearish, a development underscored by the daily moving averages which currently signal a bearish stance. This suggests that the short-term momentum is weakening, with the stock trading below key moving averages, typically a red flag for momentum traders and technical analysts.

MACD and Momentum Oscillators: Mixed Signals

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains mildly bullish, hinting at some underlying positive momentum in the medium term. However, the monthly MACD is bearish, indicating that the longer-term trend is under pressure. This divergence between weekly and monthly MACD readings suggests that while short-term rallies may occur, the broader trend is weakening.

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This lack of directional momentum from RSI implies that the stock is neither overbought nor oversold, but the absence of a bullish RSI signal adds to the cautious outlook.

Bollinger Bands and Volatility

Bollinger Bands on both weekly and monthly timeframes are bearish, indicating that the stock price is trending towards the lower band. This typically reflects increased selling pressure and heightened volatility, which can precede further downside or consolidation phases. Traders often interpret this as a warning sign that the stock may continue to face resistance in regaining upward momentum.

Moving Averages and KST Indicator

The daily moving averages are firmly bearish, with the stock price trading below its short-term and medium-term averages. This alignment typically signals sustained downward momentum and can deter bullish investors from entering positions. The KST (Know Sure Thing) indicator adds further complexity: it is bearish on the weekly timeframe but mildly bullish on the monthly chart. This suggests that while short-term momentum is weakening, there may be some longer-term support or potential for a turnaround if conditions improve.

Volume and Dow Theory Analysis

On-Balance Volume (OBV) is mildly bullish on the weekly chart, indicating that volume trends may be supporting some accumulation despite price weakness. However, the monthly OBV shows no clear trend, reflecting uncertainty among longer-term investors. Dow Theory assessments align with the broader technical picture: mildly bearish on the weekly scale and no definitive trend on the monthly scale, reinforcing the mixed signals and the need for cautious interpretation.

Comparative Performance Against Sensex

HUL’s recent returns relative to the benchmark Sensex reveal underperformance over several key periods. Over the past week, HUL gained a modest 0.10% compared to Sensex’s 0.91%. Over one month, HUL declined by 1.25%, though this was less severe than the Sensex’s 2.49% drop. Year-to-date, HUL has posted a 1.67% gain while the Sensex fell 2.24%, indicating some resilience in the short term.

However, over longer horizons, HUL has lagged significantly. The one-year return stands at -1.52% versus Sensex’s 6.44%, and over three years, HUL is down 11.03% while the Sensex surged 36.94%. Even over five years, HUL’s 3.68% gain pales in comparison to the Sensex’s 64.22%. The ten-year return of 178.60% is impressive but still trails the Sensex’s 238.44%, highlighting the stock’s relative underperformance in a broader market context.

Mojo Score and Grade Downgrade

Reflecting these technical and performance challenges, MarketsMOJO has downgraded Hindustan Unilever Ltd’s Mojo Grade from Hold to Sell as of 3 Dec 2025. The current Mojo Score stands at 37.0, indicating weak technical and fundamental momentum. The Market Cap Grade remains at 1, signalling that despite its large market capitalisation, the stock’s technical health is poor. This downgrade serves as a cautionary signal for investors to reassess their positions in HUL amid the prevailing bearish technical environment.

Investment Implications and Outlook

For investors, the mixed technical signals warrant a cautious approach. The bearish daily moving averages and monthly MACD suggest that the stock could face further downside or consolidation in the near term. The neutral RSI and mildly bullish weekly MACD and OBV provide some counterbalance but are insufficient to offset the dominant bearish trends.

Given the stock’s underperformance relative to the Sensex over multiple timeframes, investors may want to consider alternative FMCG stocks or sectors showing stronger technical and fundamental momentum. The current technical landscape suggests that HUL is unlikely to outperform the broader market in the short to medium term without a significant catalyst or improvement in momentum indicators.

Conclusion

Hindustan Unilever Ltd’s recent technical deterioration and Mojo Grade downgrade reflect a shift towards bearish momentum, underscored by weak moving averages, bearish monthly MACD, and negative Bollinger Band trends. While some weekly indicators offer mild bullish hints, the overall technical picture advises prudence. Investors should closely monitor price action and technical signals for signs of recovery or further decline, while considering peer comparisons and alternative investment opportunities within the FMCG sector.

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