Here’s why Mehul Kothari recommends buying Hindustan Unilever

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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.


BUY KOTAKBANK


TARGET: Rs 2,100


STOP LOSS: Rs 1,650


Contrary to other private banks like ICICIBANK and AXISBANK; the stock KOTAKBANK is yet to undergo a sharp recovery. Technically; it has a double bottom formation near Rs 1,650 mark. That zone also is a previous breakout zone and a strong demand. It seems that the stock has a long way to go from current levels. Thus; traders are advised to buy the stock in the range of Rs 1,820 – Rs 1,780 with a stop loss of Rs 1,650 on a closing basis for an upside potential target of Rs 2,100 in the coming 6 – 12 months.


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

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