UCOBANK - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.6

📊 UCOBANK offers a moderate swing trade setup with stable earnings and technical support. Optimal entry is ₹31.5–₹32.5. If already held, consider exiting near ₹34.5–₹36.

📈 Positive

• MACD (0.70) is positive, suggesting bullish momentum.
• RSI (58.0) indicates strength without being overbought.
• Trading above 50-DMA (₹31.2) and near 200-DMA (₹33.7) provides technical support.
• PEG ratio (0.43) suggests undervaluation relative to growth.
• Stable quarterly PAT growth from ₹607 Cr. to ₹620 Cr. supports earnings consistency.

⚠️ Limitation

• ROCE (5.76%) and ROE (8.38%) are modest, reflecting limited capital efficiency.
• Volume below 1-week average may indicate waning momentum.
• Debt-to-equity ratio (10.1) is high, typical for banks but still a risk factor.
• Dividend yield (1.19%) is moderate, not compelling for income-focused investors.

🚫 Company Negative News

• DII holdings declined by 0.22%, showing reduced domestic institutional interest.
• Stock has corrected over 37% from its 52-week high of ₹52.

✅ Company Positive News

• FII holdings remained unchanged, suggesting neutral foreign sentiment.
• Consistent EPS of ₹2.03 and stable profitability reinforce investor confidence.

🌐 Industry

• UCOBANK operates in the public sector banking industry, which is sensitive to policy changes and credit cycles.
• Industry P/E of 8.08 is significantly lower than UCOBANK’s P/E (16.3), implying premium valuation.

🧾 Conclusion

• UCOBANK is a moderate swing trade candidate with stable fundamentals and technical support.
• Optimal entry: ₹31.5–₹32.5 (near 50-DMA and support zone).
• Exit target: ₹34.5–₹36 (near 200-DMA and resistance).
• Watch for volume recovery and MACD continuation for confirmation.

I can chart UCOBANK’s RSI and MACD trends to help you visualize the timing for entry and exit.