Sizzling Stocks: Hindustan Unilever and Ranbaxy Laboratories :: Business Line

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Hindustan Unilever (Rs 306.4)

Hindustan Unilever jumped 3.5 per cent with good volumes last Monday following its announcement of demerger of FMCG exports business. This bullish momentum continued over the week. HUL surged 11.5 per cent, breaking through its significant long-term resistance at Rs 290, accompanied by heavy weekly volume. The stock also breached its 50 and 200-day moving average during its current rally.

It can move higher to Rs 320 and then to Rs 330 in the medium-term. Inability to move above the first resistance will mean that the stock can remain consolidating sideways in the range between Rs 290 and Rs 320 in the medium term. However, a slump below Rs 290 will drag the stock down to Rs 275 and then to Rs 265.

Ranbaxy Laboratories (Rs 491.8)

After taking support around Rs 430 the stock zoomed 14 per cent last week, triggered by the announcement of its Q1 results. The stock has penetrated its short-term resistance at Rs 480 on Friday and is hovering well above its 21 and 50-day moving averages. We observe that its current up move has been backed with good volumes.

Medium-term trend is down for the stock since last November's peak of Rs 624. Trend deciding level and key resistance for the stock is at Rs 520. A strong weekly close above this level can take the stock higher to Rs 550-560 range and then to Rs 580. Failure to move above the first resistance range will pull the stock down to Rs 480 or Rs 440 in the medium term