UNIONBANK - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | UNIONBANK | Market Cap | 1,34,550 Cr. | Current Price | 176 ₹ | High / Low | 183 ₹ |
| Stock P/E | 7.32 | Book Value | 165 ₹ | Dividend Yield | 2.70 % | ROCE | 6.72 % |
| ROE | 17.1 % | Face Value | 10.0 ₹ | DMA 50 | 164 ₹ | DMA 200 | 147 ₹ |
| Chg in FII Hold | 0.28 % | Chg in DII Hold | 0.21 % | PAT Qtr | 5,017 Cr. | PAT Prev Qtr | 4,249 Cr. |
| RSI | 58.2 | MACD | 4.35 | Volume | 1,35,15,721 | Avg Vol 1Wk | 1,87,82,611 |
| Low price | 107 ₹ | High price | 183 ₹ | PEG Ratio | 0.14 | Debt to equity | 10.3 |
| 52w Index | 90.6 % | Qtr Profit Var | 8.97 % | EPS | 24.1 ₹ | Industry PE | 7.88 |
📊 UNIONBANK shows strong profitability growth, attractive valuation compared to peers, and supportive technical indicators. The stock is trading close to its 52-week high with rising institutional interest, making it a good candidate for swing trading. However, high leverage and modest ROCE warrant cautious optimism.
✅ Optimal Entry Price: Around 170–174 ₹ (near support close to 50 DMA)
🚪 Exit Strategy: If already holding, consider exiting near 182–183 ₹ (resistance zone close to 52-week high).
Positive
- Low P/E (7.32) compared to industry PE (7.88), suggesting fair valuation.
- ROE (17.1%) reflects strong profitability.
- Quarterly PAT improved (5,017 Cr vs 4,249 Cr), showing growth momentum.
- EPS of 24.1 ₹ supports earnings consistency.
- Dividend yield of 2.70% provides attractive returns.
- Stock trading above both 50 DMA (164 ₹) and 200 DMA (147 ₹), showing technical strength.
- MACD positive (4.35) indicates bullish momentum.
Limitation
- ROCE (6.72%) is modest, reflecting limited efficiency.
- Debt-to-equity ratio of 10.3 indicates high leverage risk.
- RSI at 58.2 is neutral, not strongly oversold.
- Trading volume lower than weekly average, reflecting reduced participation.
Company Negative News
- High leverage remains a concern despite profitability growth.
- Stock trading close to 52-week high may limit immediate upside.
Company Positive News
- Quarterly profit variation of 8.97% highlights steady improvement.
- FII holdings increased (+0.28%) and DII holdings increased (+0.21%), showing rising institutional confidence.
- Strong dividend yield supports investor sentiment.
Industry
- Industry PE at 7.88 is slightly higher, highlighting UNIONBANK’s fair valuation.
- Banking sector benefits from credit growth and government-led infrastructure spending.
Conclusion
⚖️ UNIONBANK offers strong swing trading potential with entry near 170–174 ₹ and exit near 182–183 ₹. Fundamentals are solid with improving profits and institutional support, though high leverage and modest efficiency ratios warrant caution. Best suited for short-term traders aiming to capture momentum near resistance levels.