TECHNICAL ANALYSIS OF

HINDUSTAN UNILEVER LIMITED

SUBMITTED BY

CHANDANA MP

ROLL NO 8

2ND MCM
INTRODUCTION

With 90 years of heritage in India, Hindustan Unilever Limited (HUL)

is India’s largest fast-moving consumer goods company. On any
given day, nine out of ten Indian households use one or more of our
brands, giving us a unique opportunity to build a brighter future.
Hindustan Unilever Limited (HUL) is one of India's leading consumer goods companies, known for its vast
portfolio of household and personal care products. With a rich history dating back to 1933, HUL has become
a household name in India, offering a wide range of brands that touch the lives of millions. Its commitment
to innovation, sustainability, and social responsibility has made it a prominent player in the Indian consumer
goods industry. This introduction only scratches the surface of HUL's significance in the Indian market, as it
continues to shape the way people live, work, and play in India. Hindustan Unilever Limited (HUL) is one of
the largest and most well-established consumer goods companies in India. Here are some more details
about the company.

Company History:

HUL's roots in India trace back to 1933 when it was established as Lever Brothers India Limited. Over the
years, the company has undergone several mergers and transformations, eventually becoming Hindustan
Unilever Limited.

Ownership and Global Presence:

HUL is a subsidiary of Unilever, a British-Dutch multinational company, which owns a majority stake.
Unilever is one of the world's largest consumer goods companies, with a presence in over 190 countries.

Product Portfolio:

HUL boasts an extensive product portfolio spanning various categories, including:

Home Care: Brands like Surf Excel, Rin, and Vim

Personal Care: Iconic brands like Lux, Dove, Ponds, and Fair & Lovely.

Food and Beverages: Products like Knorr, Kissan, and Brooke Bond.

Health and Hygiene: Notable brands include Lifebuoy, Clinic Plus, and Domex.

Refreshments: Tea brands such as Brooke Bond and Lipton

sustainability and Social Responsibility:

HUL is committed to sustainability and has initiated various programs, including 'Project Shakti,' which
empowers rural women entrepreneurs. The company is also dedicated to reducing its environmental footprint
and has made significant strides in this regard.

Market Dominance:

HUL holds a significant market share in various consumer goods categories in India. Many of its brands have
become synonymous with their product categories.

Employment and Social Impact:

HUL is a major employer in India, providing jobs to thousands of people across the country. It also contributes
to social development through various initiatives, including those related to education and healthcare.

HUL's enduring presence and impact on Indian society, coupled with its commitment to quality and
sustainability, have made it an integral part of the country's consumer landscape
Hindustan Unilever's corporate headquarters are located in Andheri, Mumbai. The campus is spread over
12.5 acres of land and houses over 1,600 employees. Some of the facilities available to the employees
include a convenience store, a food court, an occupational health centre, a gym, a sports & recreation
centre and a child day care centre. The Campus is designed by Mumbai-based architecture firm Kapadia
Associates.
The company's previous headquarters were located in Back bay Reclamation, Mumbai at the Lever
House, where it was housed for more than 46 years.
The Hindustan Unilever Research Centre (HURC) was set up in 1966 in Mumbai, and Unilever Research
India in Bangalore in 1997. In 2006, the company's research facilities were brought together at a single
site in Bangalore.
OBJECTIVE OF THE STUDY

 To predict and anticipate future price movements of HUL's stock or other financial instruments
by analyzing historical price data, patterns, and trends.
 To identify optimal entry and exit points for trading or investing in HUL's stock
 To assess the level of risk associated with HUL's stock, including volatility and potential
downside, enabling investors to make risk management decisions.
 To recognize and confirm trends in HUL's stock, such as uptrends, downtrends, or
sideways movements.
RESEARCH METHODOLOGY

The study gathers historical data related to HINDUSTAN UNILEVER Limited,

including daily or intraday price information, trading volumes, and relevant stock exchange data. This
data is often obtained from secondary data sources such as financial data providers, stock exchanges,
or online sources.
ANALYSIS AND INTRPRETATION
TECHNICAL ANALYSIS

Technical analysis is a trading discipline employed to evaluate investments

and identify trading opportunities by analyzing statistical trends gathered from
trading activity, such as price movement and volume. Unlike fundamental
analysis, which attempts to evaluate a security's value based on business results
such as sales and earnings, technical analysis focuses on the study of price and
volume.
Technical analysis tools are used to scrutinize the ways supply and demand for a
security will affect changes in price, volume, and implied volatility. It operates
from the assumption that past trading activity and price changes of a security can
be valuable indicators of the security's future price movements when paired with
appropriate investing or trading rules.

It is often used to generate short-term trading signals from various charting tools,
but can also help improve the evaluation of a security's strength or weakness
relative to the broader market or one of its sectors. This information helps
analysts improve their overall valuation estimate.

Professional analysts often use technical analysis in conjunction with other forms
of research. Retail traders may make decisions based solely on the price charts
of a security and similar statistics, but practicing equity analysts rarely limit their
research to fundamental or technical analysis alone.
CHARTING TECHNIQUES

Types Of Charts

The main chart types used by most traders are the Line Chart, Candlestick Chart and Point and
Figure charts. These charts are plotted either on arithmetic or logarithmic scale and the analyst
then chooses either depending on the information required.

Line Charts

This form represents price in a line format. The closing price points are considered to draw a line
chart which together form something akin to ECG pattern, and the information revealed is very
concrete. As the closing price is considered as the strongest move of the price, the direction of the
line (upside or downside) assists in identifying the underneath strength.

Candlestick Charts

This chart represents price in the structure of High, Low, Open, and Close price. All the four
information is charted in the form of a candle. The area from the open price to high is called as
'upper shadow', the level from close to low is named as 'lower shadow' and the region between
open and close is the 'body'.

The candlesticks formed may differ as price changes on a day-to-day basis. There are various
candlesticks, the most common are: Bullish Candle, Bearish Candle,

BAR CHART

Technical analysts use bar charts to monitor price action, which

aids in trading decisions. Bar charts allow traders to analyze
trends, spot potential trend reversals, and monitor volatility and
price movements.
TECHNICAL ANALYSIS OF HUL USING THESE CHART PATTERNS;

Following are the basic prices of HUL in the past months. That means from march 31st to October 30th .

Date Open High Low Close

01-04-2023 2570 2588.55 2419 2457.3
01-05-2023 2457.3 2680 2450 2667.55
01-06-2023 2667 2738.2 2620.1 2678.15
01-07-2023 2687 2769.65 2553 2560.8
01-08-2023 2570 2591.75 2488.1 2505.05
01-09-2023 2505.05 2549 2442.9 2465.6
01-10-2023 2465.6 2582 2455.65 2482.05

IT CAN BE ANALYSED BY USING TECHNICAL INDICATOR.SO WE FIRSTLY NEED TO KNOW ABOUT WHAT IS
A TECHNICAL INDICATOR.IT IS INDIMATED BELOW.

TECHNICAL INDICATOR

A technical indicator is a mathematical pattern derived from historical data used by technical
traders or investors to predict future price trends and make trading decisions. It uses a
mathematical formula to derive a series of data points from past price, volume, and open
interest data. Technical indicators are used to see past trends and anticipate future moves.
Moving averages, relative strength index, and stochastic oscillators are examples of technical
indicators. Trading strategies, including entry, exit, and trade management rules, often use one
or more indicators to guide day-to-day decisions..

SOME OF THE COMMONLY USED MATHEMATICAL TECHNICAL INDICATORS ARE;

1. Simple moving average

2. Exponential moving average
These indicators are came under the head moving average.

MOVING AVERAGE

A moving average is a technical indicator that investors and

traders use to determine the trend direction of securities. It is
calculated by adding up all the data points during a specific
period and dividing the sum by the number of time periods.
1. SIMPLE MOVING AVERAGE

SMA is the easiest moving average to construct. It is simply the

average price over the specified period. The average is called "moving"
because it is plotted on the chart bar by bar, forming a line that moves
along the chart as the average value changes. SMAs are often used to
determine trend direction.
2. EXPONENTIAL MOVING AVERAGE
The exponential moving average (EMA) is a technical chart indicator
that tracks the price of an investment (like a stock or commodity) over
time. The EMA is a type of weighted moving average (WMA) that gives
more weighting or importance to recent price data.
THESE INDICATORS CAN BE REPRASANTED IN GRAPHICAL FORM SUCH AS LINE CHART,BAR CHART, AND
CANDLE STICK CHART.

 LINE CHART showing differentmarket trends of HUL during CURRENT YEAR SEVEN MONTHS

This type of chart is ued to show information that changes over time. Here from the above data it
is clear that the interpretation of these factors should be considered alongside other technical
indicators, price patterns, and fundamental analysis to make more informed trading or
investment decisions as Current Share Price (2470): This is the most recent trading price of ITC
Limited's stock. It reflects the market's perception of the company's current value. A higher share
price suggests positive sentiment, while a lower price might indicate negative sentiment or a
buying opportunity and Simple Moving Average (SMA) Volume (875.135k): The SMA of volume is a
measure of the average trading volume over a specific period. In this case, it's approximately
875,135 shares. It's essential to know the time frame for this SMA (e.g., 50-day, 200-day) to gain a
full understanding of its significance.
BAR CHART

It is a bar or graph presents catagorical data with rectangular bars with heighs or length
proportional to the value they represants. Here in this chart sma is represented.the formula for
calculating sma is

1 Choose a specific time period for the SMA. This could be a short-term period (e.g., 10 days) or
a longer-term period (e.g., 200 days). The choice of the time period depends on the trader's or
investor's objectives.

2 Add up the closing prices of the security for the chosen number of days.Divide the sum by the
number of days in the period. This gives you the average price for that period.

Mathematically, the formula is:

SMA = (Sum of Closing Prices for n Periods) / n

3 For example, if you want to calculate a 10-day Simple Moving Average:

Add up the closing prices of the last 10 trading days.Divide the sum by 10 (the number of days
in the period).The resulting value is the 10-day SMA. To continue, you would repeat this
calculation for each subsequent day, dropping the oldest day's data and adding the
newest day's data.

So here sma = x/n

= 6125.945 /7 = 875.14
Candle stick chart (Exponential moving average)

Here the candle stick chart shows the current share price as 875.14 and 2497 as the exponential moving
average which is similar SMA measuring trend direction over a period of time .
ISCILLATORS

An oscillator is a technical analysis tool that constructs high and low bands between two extreme
values and then builds a trend indicator that fluctuates within these bounds. Traders use the trend
indicator to discover short-term overbought or oversold conditions.

COMMONLY USED OSCILLATORS ARE

 RELATIVE STRENGTH INDEX

 RATE OF CHANGE INDICATOR

RELATIVE STRENGTH INDEX

The Relative Strength Index (RSI), developed by J. Welles Wilder,

is a momentum oscillator that measures the speed and change of
price movements. The RSI oscillates between zero and 100.
Traditionally the RSI is considered overbought when above 70 and
oversold when below 30.
ROC OF HUL

The Rate-of-Change (ROC) indicator, which is also referred to as simply Momentum, is a pure
momentum oscillator. The ROC calculation compares the current price with the price "n" periods
ago. As a momentum indicator, the ROC can lag behind actual price movements, causing traders to
miss optimal entry or exit points. Dependence on other tools: The ROC is best used in conjunction
with other technical and fundamental analysis tools to increase its reliability and effectiveness.

CONCLUSION

Rate of Change (ROC): The negative ROC value of -3.10 indicates that HUL's price has decreased over a
specific period. A negative ROC suggests a recent decline in price momentum. Traders and investors should
consider this when evaluating the stock's short-term price performance.

Relative Strength Index (RSI): With an RSI of 40.253, HUL's stock is currently in the neutral territory. The RSI
measures the relative strength of price gains to losses and values below 30 are often considered oversold,
while values above 70 are considered overbought. An RSI around 50 indicates a balanced market sentiment.

Current Market Price (875.40): The current market price of HUL's stock is 875.40. This is a crucial reference
point for traders and investors, as it represents the most recent price at which the stock is trading.

Exponential Moving Average (EMA): The EMA of 2497.14 likely represents a longer-term moving average,
and it's significantly higher than the current market price of 875.40. This could indicate a significant
discrepancy between the EMA and the current price, suggesting a potential bullish trend in the past or a
potential divergence.

in conclusion, the provided technical indicators show mixed signals. The negative ROC suggests a recent
decline in momentum, while the RSI indicates a neutral market sentiment. The significant difference
between the EMA and the current market price may warrant further investigation. It's important to use
these technical indicators in conjunction with other analysis methods and consider the overall market
conditions when making trading or investment decisions in HUL's stock.