CUB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 4.2

📊 Chart patterns: CUB is in a strong uptrend with price (278 ₹) near its 52-week high (284 ₹). The stock has been making higher highs and higher lows, indicating bullish continuation risk with minor pullbacks.

📈 Moving averages: Price > 50 DMA (255 ₹) > 200 DMA (217 ₹) → bullish alignment. As long as the price holds above 255 ₹, the trend remains positive; 217 ₹ is the medium-term trend guardrail.

📈 RSI: At 58.1, RSI shows healthy bullish momentum without being overbought, supporting continuation over immediate reversal.

📈 MACD: Positive (4.77) with an upward bias, confirming bullish short-term momentum.

📊 Bollinger Bands: Price tracking the upper band region suggests trend strength; minor mean reversion is possible on pullbacks toward the middle band.

📊 Volume trends: Volume (22,84,788) above 1-week average (17,24,820) indicates accumulation and strong participation on the up-move.

📍 Support & resistance:

- **Near support:** 272–275 ₹

- **Strong support:** 255 ₹ (50 DMA)

- **Major support:** 217 ₹ (200 DMA)

- **Immediate resistance:** 282–284 ₹ (52-week high)

🚦 Momentum signals: Bullish continuation setup. **Entry zone:** 268–275 ₹ on pullbacks toward prior breakout levels. **Exit zone:** 282–286 ₹ near resistance; partial booking recommended. A decisive breakout and hold above 284 ₹ can open 295–305 ₹ in the short term.

📈 Trend status: The stock is trending up with strong momentum and higher-than-average volume.

Positive

• Trend strength: Price above 50/200 DMA with positive MACD and firm RSI.
• Earnings momentum: Quarterly PAT growth (+15.2%) supports the uptrend.
• Institutional support: DII holdings increased (+1.52%).
• Valuation vs sector: P/E 17.2 moderately above industry but supported by trend and EPS (16.3 ₹).

Limitation

• Leverage: High debt-to-equity (7.22) raises risk in down cycles.
• Valuation premium: P/E above industry (17.2 vs 14.7) limits rerating scope.
• Near resistance: Price close to 52-week high (284 ₹), increasing pullback probability.

Company Negative News

• FII flows: FII holding declined (-1.42%), showing reduced foreign participation.

Company Positive News

• DII flows: DII holding up (+1.52%), indicating domestic institutional confidence.
• Profit growth: PAT improved (329 Cr. vs 306 Cr.).

Industry

• Sector valuation: Industry P/E 14.7 is lower than CUB’s 17.2, implying a modest premium.
• Banking cycle: Beneficiary of credit growth; sensitive to rate and asset quality trends.

Conclusion

✅ CUB is in a clear uptrend with strong momentum and rising volumes. Consider entries on pullbacks to 268–275 ₹, with profit-taking near 282–286 ₹; a breakout above 284 ₹ can extend the move toward 295–305 ₹. Maintain trend bias while price holds above 255 ₹ (50 DMA); risk increases below 255 ₹ and turns neutral below 217 ₹ (200 DMA).