Technical Trend Analysis: A Shift Towards Bearishness
HUL’s current price stands at ₹2,351.15, down 0.95% from the previous close of ₹2,373.65. The stock’s intraday range on 2 Feb 2026 was between ₹2,329.50 and ₹2,384.30, reflecting heightened volatility. Over the past week, the stock has underperformed the Sensex, delivering a -2.52% return compared to the benchmark’s -1.00%. However, over the one-month period, HUL outperformed with a 2.67% gain against Sensex’s -4.67%, indicating some resilience despite recent weakness.
Despite this short-term outperformance, the broader technical landscape has deteriorated. The overall technical trend has shifted from mildly bearish to bearish, underscoring increased selling pressure and weakening momentum.
MACD and RSI: Divergent Signals
The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On the weekly chart, MACD remains mildly bullish, suggesting some underlying positive momentum in the near term. However, the monthly MACD is bearish, indicating that the longer-term trend is weakening. This divergence between weekly and monthly MACD readings highlights the stock’s struggle to sustain upward momentum over extended periods.
The Relative Strength Index (RSI) on both weekly and monthly timeframes currently shows no clear signal, hovering in neutral zones. This lack of directional RSI momentum suggests that the stock is neither overbought nor oversold, but the absence of a bullish RSI signal adds to the cautious outlook.
Moving Averages and Bollinger Bands Confirm Downtrend
Daily moving averages have turned bearish, with the stock trading below key averages such as the 50-day and 200-day moving averages. This technical configuration typically signals a downtrend and may attract further selling if the stock fails to reclaim these levels.
Bollinger Bands on both weekly and monthly charts are also bearish, with the price trending near the lower band. This positioning often indicates increased volatility and downside risk, reinforcing the bearish technical stance.
Additional Technical Indicators: KST and Dow Theory
The Know Sure Thing (KST) indicator shows a bearish trend on the weekly chart but remains mildly bullish on the monthly timeframe. This mixed signal aligns with the MACD’s divergent readings, suggesting short-term weakness but some longer-term support.
Dow Theory analysis reveals no clear trend on either weekly or monthly charts, indicating market indecision and a lack of definitive directional momentum.
On-Balance Volume and Market Sentiment
On-Balance Volume (OBV) indicators on weekly and monthly charts show no discernible trend, implying that volume is not confirming price movements decisively. This lack of volume confirmation may limit the strength of any potential rallies and adds to the cautious technical outlook.
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Price Performance Relative to Sensex
Examining HUL’s returns relative to the Sensex over various timeframes reveals a nuanced picture. Year-to-date, HUL has gained 1.55%, outperforming the Sensex’s decline of 5.28%. However, over the past year, the stock has declined by 2.51%, while the Sensex rose 5.16%. Longer-term returns also lag the benchmark, with a three-year return of -8.56% compared to Sensex’s 35.67%, and a five-year return of 3.88% versus Sensex’s 74.40%. Over a decade, HUL has delivered a robust 187.81% return, though still trailing the Sensex’s 224.57% gain.
This relative underperformance, especially over medium-term horizons, may be contributing to the cautious technical outlook and the recent downgrade in Mojo Grade to Sell with a low Mojo Score of 37.0.
Market Capitalisation and Quality Grades
HUL’s market cap grade remains at 1, reflecting its status as a large-cap heavyweight within the FMCG sector. Despite its size and brand strength, the current technical signals and momentum shifts suggest that investors should exercise prudence. The downgrade from Hold to Sell on 3 Dec 2025 by MarketsMOJO underscores this sentiment, signalling that the stock’s near-term risk profile has increased.
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Investor Takeaway: Navigating the Current Technical Landscape
For investors in Hindustan Unilever Ltd, the current technical signals warrant a cautious approach. The bearish shift in moving averages and Bollinger Bands, combined with the downgrade in Mojo Grade to Sell, suggest that the stock may face further downside pressure in the near term. While some weekly indicators such as MACD and KST show mild bullishness, the dominant monthly signals and overall trend point to weakening momentum.
Given the stock’s recent underperformance relative to the Sensex over medium-term periods and the absence of strong volume confirmation, investors should closely monitor key support levels near the 52-week low of ₹2,136.00. A sustained break below this level could trigger further declines, while a recovery above daily moving averages would be needed to restore confidence.
In summary, Hindustan Unilever Ltd’s technical profile has deteriorated, reflecting broader market uncertainties and sector-specific challenges. Investors should weigh these technical factors alongside fundamental considerations before making allocation decisions.
Outlook and Strategic Considerations
While Hindustan Unilever remains a dominant player in the FMCG sector with a strong brand portfolio, the current technical downgrade signals a period of consolidation or correction. Market participants may consider diversifying exposure or exploring alternative FMCG stocks with more favourable technical setups and momentum.
Monitoring upcoming quarterly results, sector trends, and macroeconomic developments will be crucial in assessing whether HUL can regain its technical footing. Until then, the bearish technical signals and Mojo Grade downgrade suggest a prudent stance for risk-averse investors.
Summary of Key Technical Metrics:
- Current Price: ₹2,351.15 (down 0.95%)
- 52-Week High / Low: ₹2,779.70 / ₹2,136.00
- Mojo Score: 37.0 (Sell), downgraded from Hold on 3 Dec 2025
- Technical Trend: Mildly Bearish to Bearish
- MACD: Weekly Mildly Bullish, Monthly Bearish
- RSI: Neutral on Weekly and Monthly
- Bollinger Bands: Bearish on Weekly and Monthly
- Moving Averages: Daily Bearish
- KST: Weekly Bearish, Monthly Mildly Bullish
- Dow Theory & OBV: No Clear Trend
Investors should remain vigilant and consider these technical insights as part of a comprehensive investment strategy.
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