Technical Trend Overview and Price Movement
HUL’s price action has shown resilience in the short term, with the stock gaining 1.76% over the past week, outperforming the Sensex which declined by 0.26% in the same period. However, the one-month return paints a different story, with HUL falling 5.71%, significantly underperforming the Sensex’s marginal 0.53% decline. Year-to-date, the stock has inched up by 0.33%, slightly ahead of the benchmark’s 0.04% drop. Over longer horizons, HUL’s returns lag the Sensex considerably, with a 3-year return of -9.25% versus Sensex’s 40.02%, and a 5-year return of -2.70% against Sensex’s 77.96%. This divergence highlights the stock’s recent struggles despite its blue-chip status.
On the price front, HUL’s current level of ₹2,323.00 remains well below its 52-week high of ₹2,779.70, indicating a significant retracement from peak levels. The 52-week low stands at ₹2,136.00, suggesting the stock is trading closer to its lower range than its highs, which may be a cause for concern among investors seeking momentum.
Momentum Oscillators: MACD and RSI Analysis
The Moving Average Convergence Divergence (MACD) indicator remains bearish on both weekly and monthly charts, signalling that the underlying momentum is still skewed towards the downside. The persistence of bearish MACD readings suggests that the stock’s recent price gains may lack strong conviction and could be vulnerable to reversals if selling pressure intensifies.
Conversely, the Relative Strength Index (RSI) presents a more optimistic outlook, with bullish readings on both weekly and monthly timeframes. This divergence between MACD and RSI indicates a nuanced momentum environment where short-term buying interest is evident, but longer-term momentum remains subdued. The bullish RSI readings imply that the stock is not currently overbought and may have room for further upward movement, provided other technical factors align.
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Moving Averages and Bollinger Bands: Daily and Monthly Perspectives
Daily moving averages continue to exert bearish pressure on HUL’s price, with the stock trading below key averages such as the 50-day and 200-day moving averages. This positioning typically signals a downtrend or consolidation phase, which may deter momentum traders and long-term investors alike.
Bollinger Bands, which measure volatility and potential price extremes, are mildly bearish on both weekly and monthly charts. The stock price is currently near the lower band on the weekly chart, suggesting that it may be approaching an oversold condition in the short term. However, the mild bearishness indicates that volatility remains subdued, and a decisive breakout or breakdown is yet to materialise.
Additional Technical Indicators: KST, Dow Theory, and OBV
The Know Sure Thing (KST) indicator shows a bearish stance on the weekly chart but shifts to mildly bullish on the monthly timeframe. This mixed signal suggests that while short-term momentum remains weak, there could be a nascent longer-term recovery in progress.
Dow Theory readings are mildly bullish on the weekly scale but show no clear trend on the monthly chart. This implies that the market’s broader sentiment towards HUL is cautiously optimistic in the near term but lacks conviction over extended periods.
On-Balance Volume (OBV), a volume-based indicator that tracks buying and selling pressure, is mildly bearish weekly and neutral monthly. The lack of strong volume support for recent price moves may limit the sustainability of any upward momentum.
Market Capitalisation and Mojo Score Implications
HUL’s market capitalisation grade is rated at 1, reflecting its status as a large-cap heavyweight in the FMCG sector. However, its overall Mojo Score stands at 42.0, with a recent downgrade from Hold to Sell on 3 Dec 2025. This downgrade signals a deterioration in the stock’s technical and fundamental outlook, cautioning investors to reassess their positions.
The downgrade aligns with the mixed technical signals observed, where short-term bullishness is overshadowed by persistent bearish momentum indicators. Investors should weigh these factors carefully, especially given the stock’s underperformance relative to the Sensex over medium and long-term horizons.
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Comparative Performance and Investor Considerations
When benchmarked against the Sensex, HUL’s recent returns reveal a pattern of underperformance, particularly over the 3-year and 5-year periods. While the Sensex has delivered robust gains of 40.02% and 77.96% respectively, HUL has declined by 9.25% and 2.70% over the same intervals. This disparity underscores the challenges faced by the company in maintaining growth momentum amid evolving market dynamics.
Despite these headwinds, HUL’s 10-year return of 171.20% remains impressive, albeit trailing the Sensex’s 225.63%. This long-term perspective highlights the company’s enduring franchise value but also emphasises the need for renewed catalysts to drive future appreciation.
Investors should also note the stock’s intraday volatility, with a high of ₹2,326.75 and a low of ₹2,300.00 on 2 Jan 2026, reflecting a relatively narrow trading range. This may indicate consolidation ahead of a potential breakout or breakdown, making technical signals all the more critical for timing decisions.
Outlook and Strategic Implications
In summary, Hindustan Unilever Ltd is navigating a complex technical landscape characterised by a shift from bearish to mildly bearish momentum, conflicting oscillator signals, and subdued volume support. The downgrade in Mojo Grade to Sell further accentuates caution, suggesting that the stock may face near-term headwinds despite pockets of bullishness in RSI and Dow Theory weekly readings.
For investors, this environment calls for a balanced approach. Those with a long-term horizon may view current levels as an opportunity to accumulate selectively, given the company’s strong market position and historical resilience. Conversely, short-term traders should monitor key technical levels closely, particularly moving averages and Bollinger Bands, to identify potential entry or exit points.
Ultimately, the mixed technical signals warrant a prudent stance, with an emphasis on risk management and diversification within the FMCG sector.
Conclusion
Hindustan Unilever Ltd’s recent technical parameter changes reflect a stock at a crossroads. While short-term momentum indicators like RSI and Dow Theory weekly readings offer some optimism, the prevailing bearish MACD, daily moving averages, and volume trends temper enthusiasm. The downgrade to a Sell rating by MarketsMOJO on 3 Dec 2025 reinforces the need for caution. Investors should closely monitor evolving technical signals and broader market conditions before making significant portfolio adjustments.
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