UNIONBANK - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | UNIONBANK | Market Cap | 1,26,672 Cr. | Current Price | 166 ₹ | High / Low | 205 ₹ |
| Stock P/E | 6.77 | Book Value | 168 ₹ | Dividend Yield | 2.86 % | ROCE | 6.31 % |
| ROE | 15.5 % | Face Value | 10.0 ₹ | DMA 50 | 179 ₹ | DMA 200 | 162 ₹ |
| Chg in FII Hold | 1.23 % | Chg in DII Hold | -0.40 % | PAT Qtr | 5,316 Cr. | PAT Prev Qtr | 5,017 Cr. |
| RSI | 36.6 | MACD | -2.36 | Volume | 1,84,14,984 | Avg Vol 1Wk | 2,48,62,050 |
| Low price | 113 ₹ | High price | 205 ₹ | PEG Ratio | 0.22 | Debt to equity | 10.8 |
| 52w Index | 57.4 % | Qtr Profit Var | 6.64 % | EPS | 24.5 ₹ | Industry PE | 7.99 |
📈 Chart & Trend: UNIONBANK is trading below its 50 DMA (179 ₹) but slightly above its 200 DMA (162 ₹), reflecting short-term weakness with medium-term support. RSI at 36.6 indicates oversold territory, while MACD at -2.36 confirms bearish crossover. Bollinger Bands are moderately tight, suggesting consolidation with downside risk.
🔑 Momentum Signals: Current price (166 ₹) is holding near support at 162–165 ₹. Resistance levels are seen at 172 ₹ and 180 ₹. Volume (1.84 Cr.) is below the 1-week average (2.48 Cr.), showing reduced participation and weak conviction.
🎯 Entry Zone: 162–165 ₹ near support.
💰 Exit Zone: 172 ₹ (partial profit) and 180 ₹ (full exit).
📊 Trend Status: Consolidating with bearish bias.
Positive
- Strong ROE (15.5%) highlights profitability.
- EPS at 24.5 ₹ supports valuation strength.
- Dividend yield at 2.86% adds investor appeal.
- PEG ratio at 0.22 indicates attractive growth-adjusted valuation.
- Quarterly PAT improved (5,316 Cr. vs 5,017 Cr.), +6.64% variation.
Limitation
- Weak ROCE (6.31%) highlights modest efficiency.
- Price below 50 DMA confirms short-term weakness.
- High debt-to-equity ratio (10.8) indicates leverage risk typical of banks.
- Volume below average, limiting breakout conviction.
Company Negative News
- DII holdings reduced (-0.40%), showing weaker domestic support.
- Price trending lower from 52-week high (205 ₹).
Company Positive News
- FII holdings increased (+1.23%), reflecting foreign investor confidence.
- Quarterly profit growth supports earnings stability.
- Dividend yield at 2.86% provides investor cushion.
Industry
- Industry PE at 7.99 suggests sector trading at lower valuations compared to UNIONBANK’s P/E (6.77), indicating relative undervaluation.
- Banking sector supported by credit growth but facing margin pressures.
Conclusion
UNIONBANK is consolidating with bearish bias, trading below its 50 DMA and showing weak momentum despite medium-term support near 200 DMA. Entry near 162–165 ₹ is favorable for cautious trades with exits at 172–180 ₹. While fundamentals remain strong with ROE, EPS, and dividend yield, weak efficiency metrics and high leverage limit conviction. Best suited for short-term swing trades with strict stop-loss discipline.