With our best research, we have found HDFC BANK and HINDUSTAN UNILEVER the two best stocks for swing trading this week. Hdfc Bank can go up to 23% and Hindustan Unilever can show an upside movement of 14% from the current price in the upcoming days as per our tried and tested Swing Trading Strategies.
Swing trading is a fascinating opportunity for investors or traders to make money from momentary changes in the market. Within a short amount of time, traders can make large returns by carefully choosing the appropriate stocks.
Must Read:- Swing Trading Strategies Are About To Fail (2024)?
Please go through the important points below, which is an overview of these stock’s performance and important news based on which these stocks are on our radar.
Hdfc Bank has recently posted the highest-ever quarterly results with a Revenue of – 78,008 Cr. and highest highest-ever Net Profit Growth of 34% Year on Year to 17,718 Cr.
Hindustan Unilever has recently posted average results neither good nor bad with a Net Profit Growth of 0.6 % and Year to Year basis of Rs 2,519 crore.
In this article. we will examine these two stocks and will explain the necessary important points by understanding today’s current market conditions and trends,
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
1)HDFC BANK:-
HDFC Bank is a publicly held banking company, the bank was incorporated in August 1994 under the name of ‘HDFC Bank Limited’, with its registered office in Mumbai, India. It provides a range of banking and financial services including retail banking, wholesale banking, and treasury operations. Currently, HDFC Bank Ltd. (HBL) is the largest private-sector bank in India.
KEY POINTS –
1)Segment revenue –
Treasury – 14%
Retail banking – 46%
Wholesale banking – 27%
Other banking operations – 13%
2)International Footprints
The Bank has offices and branches in Bahrain, Hong Kong, UAE, and Kenya where they offer NRI clients Offshore Deposits, Bonds, Equity, Mutual Funds, Treasury, and Structured products offered by third parties from the Bahrain Branch. As of March 31, 2022, the Balance Sheet size of International Business was US$7.66 Billion.
3)PAN India Presence
The Bank’s network includes 21,683 Banking outlets comprising Branches (6342) and Business Correspondents (15,431), ATMs/ Cash Deposits, and Withdrawal Machines (18,130) spread across India as of FY22.
4)Leadership in the Payments business
HDFC is a leading player in the Payments ecosystem in the country. Every third rupee spent on cards in India happens on an HDFC Bank’s HDFC-issued instrument.
They have issued almost 3.21 Crore debit cards and 1.45 Crore credit cards. They have a dominant market share, with approximately 50% of electronic card volumes.
5)Leadership
HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issued the MasterCard Maestro debit card as well.
HDFC Bank is the second largest collector of direct taxes.
- Number 1 in middle-market banking with a 60% market share.
- One of the largest banking networks in semi-urban and rural India.
- HDFC Bank continues to be a leader in the auto loans segment with a strong presence in passenger, commercial vehicle, and two-wheeler financing.
- Market leader in cash management services.
Fundamentals of HDFC Bank: –
Market Cap – ₹ 10,53,656 Cr.
Stock P/E – 15.5
Current Price – ₹ 1,387
High / Low – ₹ 1,758 / 1,383
Book Value – ₹ 519
Debt to Equity – 7.39
Return on Equity – 10 Years – 17%
Return on Capital Employed – 10 years – 7.42 %
Compounded Profit Growth – 10 years – 21%
Stock Price CAGR – 10 years – 16%
Institutions Shareholding Holding – 82% which is very good.
Technical Analysis of HDFC Bank: –
As you can see from the chart below, The Stock of the company is trading below its 20 DMA (Daily Moving Average), 50 DMA, and 200 DMA (DMA also known as SMA – Simple Moving Average).
However, the company is posting the highest-ever revenue and net profits as we discussed in the fundamental analysis. Hdfc bank can show an upmove of 23% in the upcoming days. These levels are as per our tried and tested MA (Moving Average) Strategy.
It is very simple to understand, The Basis of this strategy is If the stock price is trading below its 20, 50, and 200-day moving Average and the fundamentals of the stock are growing at a respective higher rate then we can take an entry in the stock.
As you read about this particular stock above the company has an amazing opportunity to invest in, hence we think it is the best stock for swing trading this week.
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
2. Hindustan Unilever
Hindustan Unilever is in the FMCG business comprising primarily of Home Care, Beauty & Personal Care, and Foods & Refreshment segments. The Company has manufacturing facilities across the country and sells primarily in India.
KEY POINTS –
1)Beauty & Personal Care Segment
In this segment, the company has a wide-spread portfolio of more than 900 SKUs The company earns 29% margins from this segment which is the most among its divisions.
2)Brands under segment
Following are the brands that come under HINDUSTAN UNILEVER
Skin Cleansing – Dove, Lifebuoy, LUX, Pears, Liril, Hamam, Lever Ayush
Oral Care – Pepsodent, Closeup, Lever Ayush
Hair Care – Tresemme, Dove, Indulekha, Lever Ayush
Skin Care – Glow & Lovely, Pond’s, Vaseline, Lakme, Lever Ayush.
Colour Cosmetics – Lakme.
3)Home Care Segment
The company sells products from various categories under this segment.
Household care – Vim, cif, Domex, Sunlight, nature protekt
Fabric Wash – Comfort, Wheel, Rin, Surf excel, Love & care
Purifiers – Pureit
4)Foods & Refreshments Segment
The company sells various food products such as ketchup, jams, tea, coffee, soups, ice creams, nutrition products, and others under this segment.
Foods – Knorr, Kissan, Hellmann’s, Annapurna
Beverages – Lipton, Bru, Broke Bond Red Label, Taj Mahal, Taaza, 3 Roses
Nutrition – Horlicks,
Ice Cream – Kwality Walls
5)Footprint
The company’s brands are available across 80 lakh+ stores across India and around 90% of all households in India use 1 or more of the company’s branded products.
India is the company’s primary place of business, accounting for 96% of revenues.
6)Market Leader
The company’s 31 manufacturing facilities and various other third-party manufacturers produce goods for the company. Its manufacturing plants are located across India
7)Recent Mergers
In 2015, the company acquired the ‘Indulekha’ brand from Mosons Group
In 2020, the company acquired the brand ‘Vwash’ from Glenmark Pharmaceuticals Ltd.
In 2020, the company entered into a scheme of amalgamation with a listed company GlaxoSmithKline Consumer Healthcare Ltd
As per the scheme, the company allotted 18.5 crore equity shares of HINDUSTAN UNILEVER to the shareholders of GSK CH for the merger. It also paid an additional 3,045 crores to acquire the Horlicks brand for India from GSK.
Fundamentals Of Hindustan Unilever Ltd:-
Market Cap – ₹ 5,61,094 Cr.
Stock P/E – 54.4
Current Price – ₹ 2,388
High / Low – ₹ 2,770 / 2,365
Book Value – ₹ 214
Debt to Equity – 0.03
Return on Equity – 10 Years – 37%
Return on Capital Employed – 10 years – 91.3 %
Compounded Profit Growth – 10 years – 12%
Stock Price CAGR – 10 years – 16%
Promoters Holding – 61.90% which is good.
Institutions Shareholding Holding – 26% which is good.
As you can see from the above, the company’s foundation looks good. After careful analysis, we believe this is the best stock for swing trading this week.
Technical Analysis of Hindustan Unilever Ltd:-
According to our technical analysis, this stock has been trapped in a range for quite some time now. It is now trading at the lowest of its range.
As per our tried and tested Range Bound Strategy, it can show an upside move of 14% from the current price in the upcoming days. It can reach up to the target of 2720 in the near future.
It is the largest company in the FMCG (FAST MOVING CONSUMER GOODS) sector and a market leader. It’s trading in the range from last 2 years approx. FMCG Companies are under a little bit of pressure because of the increased interest rates and inflation rates. So that is why we believe it’s the best stock for swing trading this week to grab this Swing trading opportunity and take good profit to our home.
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
CONCLUSION –
To sum it up, swing trading presents an exciting approach to making a profit from a volatile market and various fluctuations. Investors or traders can make substantial returns in a short amount of time by carefully choosing the correct stocks and timing their trades. As per our analysis, HDFC BANK and HINDUSTAN UNILEVER are the best stocks for swing trading this week, you should consider adding these top stocks to your watchlist to get some good returns on your swing trades.
Happy Investing!
