Hindustan Unilever Ltd Faces Mildly Bearish Technical Shift Amid Mixed Momentum Signals

Technical Trend Shift and Price Movement

On 13 February 2026, HUL’s stock closed at ₹2,410.05, down 2.13% from the previous close of ₹2,462.45. The intraday range was notably wide, with a low of ₹2,350.35 and a high of ₹2,479.70, reflecting heightened volatility. The stock remains comfortably above its 52-week low of ₹2,136.00 but is still some distance from its 52-week high of ₹2,779.70, indicating a potential resistance zone near the upper range.

The recent technical trend has shifted from a sideways consolidation to a mildly bearish pattern, signalling that the stock may face downward pressure in the near term. This shift is corroborated by daily moving averages, which have turned mildly bearish, suggesting that short-term momentum is weakening.

MACD and Momentum Oscillators

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On the weekly timeframe, the MACD remains mildly bullish, indicating some underlying positive momentum. However, the monthly MACD has turned bearish, signalling that longer-term momentum is deteriorating. This divergence between weekly and monthly MACD readings suggests that while short-term traders might find some buying opportunities, longer-term investors should exercise caution.

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, adding to the uncertainty in the near term.

Bollinger Bands and Moving Averages

Bollinger Bands on the weekly chart indicate a sideways movement, reflecting a period of consolidation without significant volatility expansion. Conversely, the monthly Bollinger Bands have turned mildly bearish, suggesting that price volatility may increase on the downside over a longer horizon.

Daily moving averages, including the 50-day and 200-day, have started to slope downward mildly, reinforcing the bearish momentum. The stock’s current price trading below these averages is a technical red flag, often interpreted as a signal of weakening trend strength.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) oscillator is mildly bullish on both weekly and monthly charts, indicating some positive momentum in the underlying price action. This is somewhat at odds with other indicators, suggesting that momentum oscillators are providing mixed signals.

According to Dow Theory, the weekly trend remains mildly bullish, but the monthly trend has turned mildly bearish. This divergence highlights the complexity of the current market environment for HUL, where short-term optimism is tempered by longer-term caution.

On-Balance Volume (OBV) analysis shows mildly bullish signals on the weekly chart but bearish tendencies on the monthly chart. This suggests that while recent trading volumes support price gains in the short term, the longer-term volume trend is not confirming sustained buying interest.

Comparative Performance and Market Context

HUL’s recent returns have outpaced the broader Sensex in the short term but lag behind over longer periods. For instance, over the past week, HUL gained 2.38% compared to Sensex’s 0.43%, and year-to-date returns stand at 4.09% versus Sensex’s -1.81%. However, over the one-year horizon, HUL’s 3.28% return trails the Sensex’s robust 9.85% gain. The disparity widens further over three and five years, with HUL posting negative returns of -6.52% over three years and a modest 7.50% over five years, while Sensex surged 37.89% and 62.34% respectively.

Over a decade, HUL has delivered a substantial 197.19% return, though still below the Sensex’s 264.02%, reflecting the company’s steady but comparatively moderate growth within the FMCG sector.

Mojo Score and Grade Downgrade

MarketsMOJO’s proprietary scoring system assigns HUL a Mojo Score of 42.0, categorising it as a Sell. This represents a downgrade from the previous Hold rating issued on 3 December 2025. The downgrade reflects the accumulation of mildly bearish technical signals and the stock’s underperformance relative to broader market indices over medium to long-term horizons.

The Market Cap Grade remains at 1, indicating a relatively low score in terms of market capitalisation metrics within the FMCG sector. This further underscores the cautious stance adopted by analysts and investors alike.

Investor Implications and Outlook

For investors, the mixed technical signals warrant a balanced approach. Short-term traders may find opportunities given the mildly bullish weekly MACD and KST indicators, but the overarching monthly bearish signals suggest that caution is prudent. The stock’s current trading below key moving averages and the downgrade in Mojo Grade to Sell highlight potential downside risks.

Given the stock’s volatility and the divergence in technical indicators, investors should closely monitor price action around the ₹2,350 to ₹2,480 range, which has recently defined the intraday trading band. A sustained break below ₹2,350 could trigger further downside, while a recovery above ₹2,480 may signal renewed bullish momentum.

Conclusion

Hindustan Unilever Ltd’s recent technical developments paint a complex picture. While weekly momentum indicators offer some optimism, monthly signals and moving averages suggest a cautious outlook. The downgrade to a Sell rating by MarketsMOJO reflects these mixed signals and the stock’s relative underperformance over medium and long-term periods.

Investors should weigh these technical factors alongside fundamental considerations and broader market conditions before making allocation decisions. Monitoring key support and resistance levels will be critical in assessing the stock’s next directional move.

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