HUL to post Q2 results, stock up 2.5 per cent

FMCG giant Hindustan Unilever is expected to report Q2FY19 results post market hours on Friday and thereby the stock is trading up 2.5 per cent ahead of the results. A Nifty 50 stocks of HUL which holds 20.3 per cent in the FMCG index has helped raise the index which is trading up with 2 per cent gains. 

HUL is expected to post higher single-digit volume growth in between 7-9 per cent which would uplift revenue growth. Further value is expected to rise by nearly 4 per cent. The company's topline growth is expected to be in between higher single-digit or double-digit growth of up to 15 per cent. Even, a bottom line may stand in between 10-20 per cent, showing less impact of the rise in crude oil prices on the margins. 

The stock of HUL had given a Shooting star pattern on August 20 at its peak of 1,807.75 levels. Thereafter, the stock is trading in a pattern of a consolidation followed by a sharp downside rally. Recently, after giving 5 consecutive downbeats the stock witnessed upside volatility for two trading sessions. The stock halted at Rs. 1,477.90 on October 11 and witnessed a positive opening on October 12. The upsurge is supported by 14-period RSI positive crossover above over-sold zone but volumes are seen decreasing. The stock price is currently trading above 200 but below 100 days EMA level. 

Going forward, we hold 1620-1650 as the resistance provided stock closes above 1575 mark. On the downside, 1520 followed by 1475 will act as supports.