Buy Hindustan Unilever in the range of | 905.00–925.00 for a target price of | 1095.00 ;; ICICI Gladiator PICK

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Technical View Strategy: Buy Hindustan Unilever in the range of | 905.00–925.00 for a target price of | 1095.00 with a stop loss below | 838.00 on a closing basis The share price of FMCG heavy weight Hindustan Unilever is attractively poised after the recent correction off the recent life-time high of | 981 anchored at the important support area of | 850 levels. It provides a fresh entry opportunity from a medium-term perspective to ride the next up move Key technical observations ¾ The share price of Hindustan Unilever witnessed a strong rally at the start of this year, sprinting from a low of | 752 to | 968 levels in January 2015. Thereafter, the stock entered a sideways corrective phase to work off the short-term overstretched conditions. The stock tested its important support area of | 850 during the March 2015 correction, which triggered value buying. As a result, this led to a steady bounce back on the price front. The confluence of following technical parameters converging around | 850 made this a key value area for the stock: • The medium term rising trendline joining the May and December 2014 lows was placed at | 850 • Value of rising 21 week EMA and the 100 day EMA, which have historically acted as a cushion to prices during intermediate corrections over last one year was also placed around | 854 levels • The 61.8% Fibonacci retracement of the January up move was placed at | 842 levels ¾ Time wise the stock has spent over 11 weeks under a corrective phase while retracing the four week January rally by just under 61.8%. Limited price correction and an elongated time wise correction is the primary attribute of a healthy correction phase within a secular uptrend. Therefore, we believe the current corrective phase has approached maturity and the stock has formed a potential higher bottom at the March 2015 low of | 849. It is set to embark upon its next up leg within the larger uptrend ¾ On the oscillators front, the weekly RSI tested its bull market support band placed at 50-55 readings during the recent correction and bounced back from thereon to confirm strength in the price up move from the value area of | 850. This signals continuation of the upward momentum in the short term Conclusion: We believe the stock is attractively poised and offers a good reward/risk set-up to ride the next up move. We expect the stock to head towards | 1095 levels in the medium term. The price equality of the current up move from | 849 levels with the January rally projects upsides towards | 1095 levels in the medium term

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