Here's why Mehul Kothari recommends buying Hindustan Unilever

According to the technical analyst from Anand Rathi, it is a good time to buy HUL as the stock recently retested its 200-WMA after a gap of 10 - 12 years.

BUY HINDUNILVR (HUL)

TARGET: Rs 2,400

STOP LOSS: Rs 1,900

Being defensive in nature; the stock HINDUNILVR has not done much in the last many months. On the technical front; it is oversold on larger degree charts. During the recent fall, it came down to Rs 1,900-mark which is the placement of its 200-weekly moving average (WMA). The stock has retested this average after 10 – 12 years which indicates this is a good time to grab the stock for investment. Thus; traders are advised to buy the stock in the range of Rs 2,100 - Rs 2,040 with a stop loss of Rs 1,900 on a closing basis for an upside potential target of Rs 2,400 in the coming 6 to 12 months.

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Disclaimer: Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal.