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CUB - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 4.0

Stock Code CUB Market Cap 20,964 Cr. Current Price 282 ₹ High / Low 305 ₹
Stock P/E 17.3 Book Value 134 ₹ Dividend Yield 0.73 % ROCE 6.86 %
ROE 12.6 % Face Value 1.00 ₹ DMA 50 275 ₹ DMA 200 234 ₹
Chg in FII Hold -2.47 % Chg in DII Hold 3.48 % PAT Qtr 329 Cr. PAT Prev Qtr 306 Cr.
RSI 50.9 MACD 2.99 Volume 17,59,493 Avg Vol 1Wk 26,64,143
Low price 143 ₹ High price 305 ₹ PEG Ratio 1.24 Debt to equity 7.22
52w Index 86.3 % Qtr Profit Var 15.2 % EPS 16.3 ₹ Industry PE 15.8

📊 Technical Analysis

  • Chart Patterns: CUB has corrected from its 52-week high of 305 ₹ and is consolidating near 282 ₹.
  • Moving Averages: Price (282 ₹) is above both 50 DMA (275 ₹) and 200 DMA (234 ₹), confirming bullish medium-term trend.
  • RSI: At 50.9, neutral zone — balanced momentum.
  • MACD: Positive (2.99), indicating bullish crossover.
  • Bollinger Bands: Price near mid-band, suggesting consolidation with potential breakout.
  • Volume Trends: Current volume (17.6 lakh) below 1-week average (26.6 lakh), showing moderate participation.

📈 Momentum & Signals

  • Short-term Momentum: Positive due to MACD crossover and price above moving averages.
  • Support Levels: 275 ₹ (near-term), 260 ₹ (major support).
  • Resistance Levels: 290 ₹ (short-term), 305 ₹ (52-week high).
  • Optimal Entry Zone: 275–285 ₹ (close to support).
  • Optimal Exit Zone: 295–305 ₹ (near resistance).
  • Trend Status: Trending upward with consolidation signals.

✅ Positive

  • EPS of 16.3 ₹ supports earnings visibility.
  • Quarterly PAT improved (329 Cr vs 306 Cr), showing sequential growth.
  • DII holdings increased (+3.48%), showing strong domestic institutional support.
  • Price trading above both 50 DMA and 200 DMA confirms bullish bias.

⚠️ Limitation

  • Debt-to-equity ratio (7.22) indicates high leverage.
  • ROCE (6.86%) is modest compared to peers.
  • Volume participation below average, reducing conviction in breakout moves.

📉 Company Negative News

  • FII holdings decreased (-2.47%), showing reduced foreign investor confidence.
  • Stock trading near upper end of 52-week range (86.3%), limiting upside potential.

📈 Company Positive News

  • Quarterly profit variation of 15.2% highlights growth momentum.
  • Strong DII inflows indicate confidence from domestic institutions.

🏭 Industry

  • Banking sector supported by credit growth and financial inclusion initiatives.
  • Industry PE at 15.8 vs stock PE at 17.3 — stock trades at slight premium valuation.

🔎 Conclusion

  • CUB is trending upward with bullish signals from MACD and moving averages.
  • Best entry near 275–285 ₹, exit near 295–305 ₹ unless breakout above 305 ₹ occurs.
  • Medium-term outlook positive due to profit growth and institutional support, though high leverage remains a concern.

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