UCOBANK - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📈 UCOBANK is currently in a trending phase with bullish short-term momentum and strong volume support. Entry zone: ₹31.0–₹33.2; exit zone: ₹35.5–₹37.5. Watch for breakout above 200-DMA (₹33.7) with sustained volume.

📊 Technical Overview

• Price Action: Trading at ₹33.2, above 50-DMA (₹31.0) and just below 200-DMA (₹33.7), indicating bullish momentum with minor resistance.
• RSI (65.0): Approaching overbought zone, suggesting strong momentum but caution for short-term pullback.
• MACD (0.68): Bullish crossover, confirming upward momentum.
• Bollinger Bands: Price near upper band, indicating strength but possible resistance.
• Volume: Nearly double the 1-week average, showing strong buying interest and breakout conviction.
• Support Zones: ₹31.0 (S1), ₹29.5 (S2)
• Resistance Zones: ₹35.5 (R1), ₹37.5 (R2)

✅ Positive

• EPS of ₹2.03 supports valuation and earnings visibility.
• Quarterly PAT increased from ₹607 Cr. to ₹620 Cr., showing earnings growth.
• PEG ratio of 0.43 indicates undervaluation relative to growth.
• Strong volume surge confirms investor interest and momentum.

⚠️ Limitation

• Stock P/E (16.5) is above industry average (7.98), suggesting premium valuation.
• ROCE (5.76%) and ROE (8.38%) are modest, reflecting average capital efficiency.
• Debt-to-equity ratio of 10.1 is high, raising financial risk concerns.
• RSI nearing overbought zone, caution for short-term traders.

📉 Company Negative News

• DII holdings declined (-0.22%), reflecting reduced domestic institutional confidence.
• High leverage may limit flexibility in adverse market conditions.

📈 Company Positive News

• Stable PAT and consistent EPS reinforce shareholder value.
• Strong volume and MACD crossover suggest bullish sentiment among traders.

🏢 Industry

• Banking sector benefits from rising credit demand and improving asset quality.
• Industry P/E of 7.98 reflects conservative valuation across peers.

🧭 Conclusion

• UCOBANK is trending upward with bullish technical indicators and strong volume support.
• Entry zone: ₹31.0–₹33.2; exit zone: ₹35.5–₹37.5 for short-term swing trades.
• Long-term investors should monitor debt levels and breakout above ₹33.7 for sustained upside.