UNIONBANK - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.8

📊 Analysis Summary

Union Bank is currently not an ideal candidate for swing trading due to weak technical indicators and bearish momentum. Despite strong fundamentals like low P/E and high ROE, the stock is under pressure and may continue to consolidate or decline in the short term.

✅ Positives

Low P/E: 5.39 vs Industry PE: 7.49

Undervalued — attractive from a valuation standpoint.

Strong ROE: 17.0%

Indicates efficient use of equity capital.

High Dividend Yield: 3.58%

Provides income cushion during sideways movement.

EPS: ₹24.6

Solid earnings base — supports long-term value.

FII & DII Holding ↑

Institutional buying — mild positive sentiment.

Quarterly PAT Growth: +21.6%

Earnings momentum — long-term positive.

⚠️ Technical Weaknesses

RSI: 31.2

Oversold — signals weakness, but not yet reversing.

MACD: –2.66

Bearish crossover — confirms downward momentum.

Trading Below DMA 50 (₹142)

Indicates short-term downtrend.

52W Index: 55.2%

Far from yearly high — weak relative strength.

Price Below Book Value (₹149)

May attract value investors, but signals market pessimism.

🎯 Optimal Entry Price

Entry Zone: ₹125–₹128

Near recent support — wait for RSI to rise above 35 and MACD to turn positive before entering.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹140–₹145

Near DMA 50 — good level to exit if bounce occurs.

Stop Loss: ₹120

Below recent support — protects against further downside.

Would you like to explore PSU banks with stronger RSI and MACD signals, or private banks showing breakout potential for swing trades?

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