Why HINDUNILVR Share Price Plunged -1.95% Today?

HINDUNILVR is making significant moves on Dalal Street today, with the stock plunging -1.95% to trade at ₹2260.6 as of market close. The FMCG giant, typically a low-volatility defensive play, has seen uncharacteristic weakness, drawing the attention of both institutional and retail desks.

⚡ The Trigger: What is Driving the Move?

The primary driver for today’s downward move appears to be the ongoing price discovery and adjustment phase following the demerger of its ice-cream business (Kwality Wall’s).

According to exchange filings, HINDUNILVR released a “Material Update in Connection with the Scheme of Arrangement” late yesterday, which investors are pricing in today. The company recently completed the spin-off of its ice-cream division into a separate entity, Kwality Wall’s (India) Limited, with the record date set for December 5, 2025.

Since the stock went ex-demerger, it has been volatile as the market attempts to recalibrate the fair value of the remaining FMCG core business (Home Care, Beauty & Personal Care, and Foods). While the demerger is intended to unlock value, the immediate short-term impact often involves selling pressure as funds rebalance their portfolios and arbitrage positions are unwound.

Additionally, broader sentiment in the FMCG sector remains cautious. Reports of “weak urban demand” and “margin pressure” from peers have created a sector-wide overhang, amplifying the selling in HINDUNILVR despite the volume pressure remaining relatively Low, suggesting this is a valuation adjustment rather than a panic sell-off.

📉 Technical Setup & Key Levels

Technically, HINDUNILVR has broken below its short-term consolidation zone. The stock is currently trading below its 20-day and 50-day moving averages, signaling a Mild Bearish trend. The RSI (Relative Strength Index) is cooling off from neutral levels, currently hovering near 40-45, indicating there is still room for downside before it hits oversold territory.

The price action suggests a “drift” rather than a crash, consistent with the low volume pressure. The ₹2300 level, which acted as support earlier in the week, has now flipped to become immediate resistance.

Level	Price (₹)	Significance
Immediate Resistance	₹2300	Psychological round number & previous support
Immediate Support	₹2240	Recent swing low zone
Key Resistance	₹2350	50-Day Moving Average confluence
Key Support	₹2200	Major structural support & psychological floor

🆚 Peer Comparison

While HINDUNILVR shed -1.95%, the broader FMCG pack showed mixed resilience.

• ITC Ltd: Traded relatively flat to marginally positive (+0.2%), benefiting from its diversified revenue stream and cigarette business stability, which often decouples it from pure-play FMCG demand cycles.
• Godrej Consumer Products: Faced similar pressure, trading down approximately -1.0%, echoing the sector-wide concerns regarding urban consumption slowdowns.

HINDUNILVR’s underperformance relative to the Nifty 50 (which remained flat to positive) highlights that the selling is stock-specific, driven by the demerger mechanics and specific corporate announcements rather than a systemic market crash.

🎯 Analyst Verdict

Signal: Watch & Wait

The current setup for HINDUNILVR is Mild Bearish but lacks the high-volume conviction of a major trend reversal. The ongoing price adjustment post-demerger creates a “noisy” chart that is difficult to trade aggressively.

• For Traders: The breakdown below ₹2300 opens a path toward ₹2240. However, with low volume backing the move, short-side follow-through is not guaranteed. Avoid chasing the dip; wait for a bounce to resistance or a breakdown of ₹2240 with volume confirmation.
• For Investors: This dip represents a valuation reset. The core business remains robust. We recommend a “Monitor for Stabilization” approach. Let the stock find a floor around the ₹2200-₹2240 zone before considering accumulation. The demerger dust needs to settle before a clear directional bias emerges.

Momentum-X Algo detects no immediate buy signal. Volatility remains moderate, but the lack of buying interest suggests patience is the best strategy.