Both are good companies in their sector, but we are not the majority share holder of company, so as a retail participant of the market one has to take decision according to their risk appetite, many a times even the finest company doesn’t give good return if shares are bought at high prices, because the success this companies delivered took decades to achieve, so I am giving some highlights on these shares. I hope readers would find helpful.
Pidilite Industries:
Technically the stock is not able to cross the resistance at Rs.1214.29, once this resistance is broken and the stock takes support and starts trading above then we can see the targets of Rs.1600, but at this time it doesn’t seem crossing, because on valuation basis also the stock price should be around Rs.1250 which is not so far. So we will have to wait for a correction and then should take position, and for long-term company should also be performing there are many people who are holding bad companies for long term, it will not give any returns, seeing the markets one should avoid taking position in this, yes you can buy for trading purpose but for investment, the answer is NO at this time.
Hindustan Unilever Ltd.
In this stock also technically it has a resistance around Rs.1755.81, once it is broken and starts taking deliveries above it then we can get targets around Rs.2400. Consumption sector is delivering good growth, so such companies grow at high rate, but we can see ITC as one example, it gave returns to those who hold for around 15–20 years, but now markets are changing rapidly, we have to find new opportunities, such stocks should be held if you have extra money, otherwise positions can be taken based on technical analysis. E-Commerce companies are coming into this sector, which will change the market which we see today.
