iCharts Discussions

[ipakrashi]

Hi
In my view Hindustan Unilever looks a bit weak and therefore gives us a chance to enter into this stock.

It was observed on 23-09-2009 that Hind Lever closed at around 259 with an intraday low of 256 in the NSE.

Therefore it has come down quite close to the average support level of Rs 255, and therefore one can enter the stock with a short term target of Rs 275/-.

In the charts it shows 2 bearish formations

1. A DESCENDING TRIANGLE PATTERN which has shaped since July 09 highs

2. A HEAD AND SHOULDER PATTERN that has shaped up since mid August 09.

The F&O Data suggest 12% open interest increase with decreasing prices, which can mean that there are "short" positions that have been opened up.

Therefore one can get into this share around 240-255 with a medium term target of Rs 275. It is also to be noted that this being a defensive share will see price action if there is a retracement in the nifty and if the nifty actually gets down to taste 4750.

Indranil