Hindustan Unilever (HUL) has dipped nearly 5% , extending its Friday’s fall, after reporting a lower-than-expected 4% year-on-year (yoy) growth in underlying volume growth for its domestic consumer business against analyst estimates of 5-6% for the quarter ended June 30, 2013 (Q1) mainly due to the poor performance of the personal products segment.
So how should you trade this stock?
Check out the trading strategy fot HUL and other frontline stocks with Mudit Goyal, technical analyst, SMC Global.
Smartinvestor : Markets have been on a downtrend since Friday. Should one expect lower levels in the Nifty this week?
Mudit Goyal : Technically Nifty has filled the gap area around 5880 levels which was formed on 11th July and RSI has also signaled bullish so we anticipate that some recovery can be witness in coming days. Nifty is likely to seek support around 5850-5830 levels and on the upper side, may face hurdle around 5980-6050 in near term.
Smartinvestor : Do you forsee any rebound in the market, if Nifty goes below 5,800 levels?
Mudit Goyal : I don’t expect any fall below 5830-5800 levels, considering select momentum indicators all are suggesting rebound from current levels.
Smartinvestor : Which IT stock looks like where one should be taking profits from the largecap space?
Mudit Goyal : As per the charts, IT stocks still have potential to give decent upside rally from current levels. So, I would like to suggest hold in existing positions and also make long in HCLTECH, TCS and INFY for the upside target of 5-7% from current levels.
Smartinvestor : What is your strategy for Hindustan Unilever (HUL) which has dipped nearly 5% in today's trade?
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