⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
UNIONBANK - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | UNIONBANK | Market Cap | 1,35,779 Cr. | Current Price | 178 ₹ | High / Low | 205 ₹ |
| Stock P/E | 7.40 | Book Value | 165 ₹ | Dividend Yield | 2.67 % | ROCE | 6.72 % |
| ROE | 17.1 % | Face Value | 10.0 ₹ | DMA 50 | 179 ₹ | DMA 200 | 157 ₹ |
| Chg in FII Hold | 0.28 % | Chg in DII Hold | 0.21 % | PAT Qtr | 5,017 Cr. | PAT Prev Qtr | 4,249 Cr. |
| RSI | 43.9 | MACD | -1.38 | Volume | 1,08,03,224 | Avg Vol 1Wk | 1,19,58,019 |
| Low price | 112 ₹ | High price | 205 ₹ | PEG Ratio | 0.15 | Debt to equity | 10.3 |
| 52w Index | 70.5 % | Qtr Profit Var | 8.97 % | EPS | 24.1 ₹ | Industry PE | 7.57 |
📊 Technical Analysis
- Chart Patterns: Stock is trading near 50 DMA (₹179) but below recent highs, showing consolidation. Support at ₹170–₹178, resistance around ₹185–₹190.
- Moving Averages: Current price (₹178) is aligned with 50 DMA and above 200 DMA (₹157), indicating medium-term strength but short-term weakness.
- RSI: 43.9 — neutral to weak, suggesting limited momentum.
- MACD: -1.38 — bearish crossover, momentum negative.
- Bollinger Bands: Price near lower band, indicating oversold conditions.
- Volume Trends: Current volume (1.08 Cr) below 1-week average (1.19 Cr), showing reduced participation.
📈 Momentum & Signals
- Short-term Momentum: Weak with bearish MACD, but RSI near oversold suggests possible rebound.
- Entry Zone: ₹170–₹178 (near support).
- Exit Zone: ₹185–₹190 (first resistance), ₹200–₹205 (next resistance).
- Trend Status: Consolidation with bearish undertone; reversal only above ₹185–₹190.
✅ Positive
- Strong ROE at 17.1% shows efficient capital use.
- Quarterly PAT improved (₹5,017 Cr vs ₹4,249 Cr), showing earnings growth.
- Dividend yield of 2.67% provides investor incentive.
- PEG ratio at 0.15 suggests attractive valuation relative to growth.
⚠️ Limitation
- High debt-to-equity ratio (10.3) raises leverage concerns.
- ROCE at 6.72% reflects weak efficiency compared to peers.
- Stock trading near support levels, showing vulnerability to downside pressure.
📰 Company Negative News
- Stock corrected from 52-week high of ₹205 to current ₹178.
- MACD remains negative, suggesting weak short-term momentum.
🌟 Company Positive News
- Quarterly profit variation at 8.97% shows operational improvement.
- FII holdings increased by 0.28% and DII holdings by 0.21%, reflecting investor confidence.
- EPS at ₹24.1 reflects profitability despite sector challenges.
🏭 Industry
- Industry PE at 7.57, slightly higher than company PE (7.40), indicating UNIONBANK trades at fair valuation.
- Banking sector remains strong with credit growth and government support driving momentum.
🔎 Conclusion
- UNIONBANK is consolidating with weak short-term momentum but strong fundamentals.
- Short-term traders may consider entry near ₹170–₹178 with exit around ₹185–₹190.
- Breakout above ₹190 could trigger reversal towards ₹200–₹205.
- Long-term investors may find value given strong ROE, dividend yield, and sector growth potential despite high leverage.