UCOBANK - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | UCOBANK | Market Cap | 31,086 Cr. | Current Price | 24.8 ₹ | High / Low | 35.1 ₹ |
| Stock P/E | 11.2 | Book Value | 26.5 ₹ | Dividend Yield | 1.78 % | ROCE | 5.55 % |
| ROE | 8.62 % | Face Value | 10.0 ₹ | DMA 50 | 26.1 ₹ | DMA 200 | 29.0 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | -0.03 % | PAT Qtr | 801 Cr. | PAT Prev Qtr | 740 Cr. |
| RSI | 38.8 | MACD | -0.40 | Volume | 27,41,021 | Avg Vol 1Wk | 41,57,115 |
| Low price | 22.2 ₹ | High price | 35.1 ₹ | PEG Ratio | 0.80 | Debt to equity | 10.6 |
| 52w Index | 19.9 % | Qtr Profit Var | 22.8 % | EPS | 2.21 ₹ | Industry PE | 7.84 |
📊 Chart Analysis: UCOBANK trades at ₹24.8, below both its 50 DMA (₹26.1) and 200 DMA (₹29.0), signaling short-term and medium-term weakness. RSI at 38.8 indicates oversold conditions, suggesting potential rebound. MACD at -0.40 is bearish, confirming downward momentum. Bollinger Bands place the price near the lower band, pointing to pressure with scope for short-term bounce. Current volume (27.4L) is below the 1-week average (41.6L), reflecting reduced participation.
📈 Momentum Signals: Short-term momentum is bearish with oversold bias. A move above ₹25.5 could trigger recovery, while a drop below ₹24 risks further downside.
💡 Entry Zone: ₹23.5–₹24.5 (support near recent lows).
🚪 Exit Zone: ₹26–₹27.5 (resistance near 50 DMA and trendline).
🔎 Trend Status: The stock is reversing downward after failing to sustain above ₹35, with oversold RSI hinting at possible short-term consolidation.
Positive
- 📌 EPS of ₹2.21 with profitability.
- 📌 Dividend yield of 1.78% provides shareholder returns.
- 📌 PAT improved from ₹740 Cr. to ₹801 Cr. (+22.8% variation).
- 📌 PEG ratio of 0.80 suggests fair valuation relative to growth.
Limitation
- ⚠️ Price below both 50 DMA and 200 DMA indicates weakness.
- ⚠️ ROCE (5.55%) and ROE (8.62%) remain low, showing limited efficiency.
- ⚠️ Debt-to-equity ratio of 10.6 highlights high leverage risk.
Company Negative News
- ❌ FII holding decreased (-0.05%) and DII holding decreased (-0.03%), showing reduced institutional confidence.
- ❌ Stock still far below 52-week high of ₹35.1, reflecting long-term weakness.
Company Positive News
- ✅ PAT growth (+22.8%) shows operational improvement.
- ✅ Dividend yield provides steady returns to investors.
Industry
- 🌐 Banking sector remains cyclical with credit growth and NPA challenges.
- 🌐 Industry PE at 7.84 is lower than UCOBANK’s PE (11.2), suggesting premium valuation.
Conclusion
📌 UCOBANK is reversing downward with bearish signals but oversold RSI suggests potential short-term consolidation. Traders may consider entries near ₹23.5–₹24.5 and exits around ₹26–₹27.5. While fundamentals show PAT growth and dividend yield, high debt levels, weak efficiency ratios, and declining institutional support warrant caution for medium-term investors.
For deeper clarity, we could refine support and resistance mapping, expand on volume analysis to confirm momentum, or dive into RSI and MACD signals for short-term trading cues.