UNIONBANK - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.2

📊 UNIONBANK shows strong technical momentum and attractive valuation, making it a solid swing trade candidate. Optimal entry is ₹148–₹151. If already held, consider exiting near ₹158–₹162.

📈 Positive

• MACD (3.35) and RSI (67.3) indicate bullish momentum approaching breakout levels.
• Trading above both 50-DMA (₹140) and 200-DMA (₹134) confirms strong technical support.
• P/E (6.44) is significantly below industry average (8.08), suggesting undervaluation.
• Dividend yield (3.13%) adds income appeal for short-term holders.
• EPS of ₹23.5 and consistent quarterly PAT above ₹4,000 Cr. reflect earnings strength.

⚠️ Limitation

• ROCE (6.72%) is modest, indicating limited capital efficiency.
• Volume below 1-week average may suggest reduced momentum.
• Debt-to-equity ratio (10.8) is high, typical for banks but still a risk factor.
• PEG ratio (0.13) is low, but may reflect slower growth expectations.

🚫 Company Negative News

• DII holdings declined by 0.23%, showing reduced domestic institutional interest.
• Quarterly profit variation of -9.97% indicates slight earnings contraction.

✅ Company Positive News

• FII holdings increased by 0.16%, suggesting rising foreign investor confidence.
• Strong PAT and EPS performance reinforce long-term stability.

🌐 Industry

• UNIONBANK operates in the public sector banking industry, which benefits from credit growth and government support.
• Industry P/E of 8.08 reflects conservative valuation norms.

🧾 Conclusion

• UNIONBANK is a strong swing trade candidate with bullish technicals and attractive valuation.
• Optimal entry: ₹148–₹151 (near current price and breakout zone).
• Exit target: ₹158–₹162 (near 52-week high and resistance).
• Monitor RSI for overbought signals and MACD continuation for confirmation.

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