UNIONBANK - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | UNIONBANK | Market Cap | 1,22,802 Cr. | Current Price | 161 ₹ | High / Low | 205 ₹ |
| Stock P/E | 6.57 | Book Value | 168 ₹ | Dividend Yield | 2.96 % | ROCE | 6.31 % |
| ROE | 15.5 % | Face Value | 10.0 ₹ | DMA 50 | 172 ₹ | 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 | 38.0 | MACD | -4.91 | Volume | 87,45,525 | Avg Vol 1Wk | 89,52,786 |
| Low price | 125 ₹ | High price | 205 ₹ | PEG Ratio | 0.22 | Debt to equity | 10.8 |
| 52w Index | 44.8 % | Qtr Profit Var | 6.64 % | EPS | 24.5 ₹ | Industry PE | 7.84 |
📊 Chart Analysis: UNIONBANK trades at ₹161, below its 50 DMA (₹172) and near its 200 DMA (₹162), signaling short-term weakness with medium-term support. RSI at 38.0 indicates oversold conditions. MACD at -4.91 is bearish, confirming downward pressure. Bollinger Bands place the price near the lower band, suggesting weakness with potential for short-term bounce. Current volume (87.4L) is slightly below the 1-week average (89.5L), reflecting reduced participation.
📈 Momentum Signals: Short-term momentum is bearish with oversold bias. A move above ₹165 could trigger recovery, while a drop below ₹160 risks further downside.
💡 Entry Zone: ₹158–₹162 (support near 200 DMA).
🚪 Exit Zone: ₹170–₹175 (resistance near 50 DMA and trendline).
🔎 Trend Status: The stock is reversing downward after failing to sustain above ₹205, with oversold RSI hinting at possible short-term consolidation.
Positive
- 📌 EPS of ₹24.5 with profitability.
- 📌 ROE of 15.5% shows decent efficiency.
- 📌 Dividend yield of 2.96% provides shareholder returns.
- 📌 PAT improved from ₹5,017 Cr. to ₹5,316 Cr. (+6.64% variation).
- 📌 FII holding increased (+1.23%), showing foreign investor confidence.
Limitation
- ⚠️ Price below 50 DMA indicates short-term weakness.
- ⚠️ ROCE of 6.31% remains low, showing limited efficiency.
- ⚠️ Debt-to-equity ratio of 10.8 highlights high leverage risk.
Company Negative News
- ❌ DII holding decreased (-0.40%), reflecting reduced domestic institutional support.
- ❌ Stock still far below 52-week high of ₹205, showing long-term weakness.
Company Positive News
- ✅ PAT growth (+6.64%) shows operational improvement.
- ✅ Strong dividend yield provides steady returns to investors.
Industry
- 🌐 Banking sector remains cyclical with credit growth and NPA challenges.
- 🌐 Industry PE at 7.84 is slightly higher than UNIONBANK’s PE (6.57), suggesting relative undervaluation.
Conclusion
📌 UNIONBANK is reversing downward with bearish signals but oversold RSI suggests potential short-term consolidation. Traders may consider entries near ₹158–₹162 and exits around ₹170–₹175. While fundamentals show PAT growth, dividend yield, and foreign investor support, high debt levels, weak ROCE, and declining domestic institutional confidence warrant cautious optimism 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.