UNIONBANK - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.0

🏦 UNIONBANK Swing Trade Analysis

UNIONBANK offers a compelling swing trade setup with strong technical positioning, attractive valuation, and improving institutional sentiment. While capital efficiency is modest and leverage is high (as typical for banks), the overall setup favors a short-term bullish move.

✅ Strengths

Technical Setup

MACD: 0.21 — bullish crossover, indicating upward momentum.

RSI: 59.1 — healthy zone, with room to rise before overbought.

Price Above DMA 50 & 200: Current price ₹137 is above both DMA 50 (₹135) and DMA 200 (₹131), confirming trend strength.

Volume Surge: Current volume is ~31% higher than 1-week average, showing strong participation.

Valuation & Earnings

P/E: 5.66 vs Industry PE: 7.91 — undervalued.

PEG Ratio: 0.11 — extremely attractive relative to growth.

EPS: ₹24.1 — supports valuation.

Quarterly PAT Stability: ₹4,116 Cr. vs ₹4,985 Cr. — consistent profitability.

Dividend Yield: 3.48% — solid income support.

Institutional Sentiment

FII Holding Up (0.59%)

DII Holding Up (0.30%)

⚠️ Risks

ROCE: 6.72% — modest capital efficiency.

Debt-to-Equity: 11.2 — high leverage, typical for PSU banks but still a risk factor.

52W Index: 61.9% — mid-range, suggesting moderate recovery.

🎯 Trade Strategy

Optimal Entry Price: ₹134–₹136

Enter near 50 DMA for a low-risk setup with technical support.

Exit Plan (If Holding)

Target Exit: ₹148–₹152

Conservative target near resistance zone.

Stop Loss: ₹130

Below 200 DMA to manage downside risk.

UNIONBANK is a strong swing candidate for traders seeking value and momentum in the PSU banking space. Let me know if you'd like to compare it with peers like Bank of Baroda or PNB.

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