Technical outlook: Analyst bullish on HUL, bearish on Max Financial

Rajesh Bhosale of Angel One is upbeat on HUL, but bearish on Max Financial; here's why

Stock recommendations by Rajesh Bhosale, Angel One

NSE Scrip – HINDUNILVR

View - Bullish

Last Close – ₹2,410 

While the benchmark index Nifty ended the week with a decline of around 2.5 per cent, Hindustan Unilever stock acted as a defensive outperformer, gaining nearly 2 per cent and exhibiting strong relative strength. On the daily chart, prices are forming a bullish Inverse Head and Shoulders pattern and are placed above all major moving averages, which supports the buy view. Additionally, the smoothened RSI has generated a fresh buy signal, with a bullish crossover above its signal line on both the daily and weekly charts.

Hence, we recommend to BUY HINDUNILVR in range ₹2,410 - ₹2,400 | Stop-loss: ₹2,330 | Target: ₹2,550.

NSE Scrip – MFSL

View - Bearish

Last Close – ₹1,595 

The Max Financial Services stock has been trading in a range over the past three months and, after failing to cross the ₹1,750 mark on two occasions, has now breached key support levels, confirming a topping-out formation in the form of a Double Top. Prices have also slipped below the crucial 89 DEMA, which earlier acted as support and now signals a change in polarity. On the indicator front, the RSI remains in the negative zone, further reinforcing the sell view.

 

Hence, we recommend to SELL MFSL around ₹1,595 | Stop-loss: ₹1,640 | Target: ₹1,500.

 

(Disclaimer: This article is by  Rajesh Bhosale, technical analyst, Angel One. Views expressed are his own.)