UNIONBANK - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.0

📈 UNIONBANK is currently in a trending phase with strong short-term momentum and volume breakout. Entry zone: ₹139–₹149; exit zone: ₹155–₹159. Watch for RSI cooling and MACD continuation to confirm sustained upside.

📊 Technical Overview

• Price Action: Trading at ₹149, above both 50-DMA (₹139) and 200-DMA (₹134), confirming bullish trend.
• RSI (64.0): Approaching overbought zone, indicating strong momentum but caution for short-term pullback.
• MACD (2.60): Bullish crossover, confirming upward momentum.
• Bollinger Bands: Price near upper band, suggesting strength but possible resistance.
• Volume: More than double the 1-week average, indicating strong buying interest and breakout conviction.
• Support Zones: ₹139 (S1), ₹134 (S2)
• Resistance Zones: ₹155 (R1), ₹159 (R2)

✅ Positive

• EPS of ₹23.5 supports valuation and earnings visibility.
• Quarterly PAT remains strong at ₹4,249 Cr., showing consistent profitability.
• PEG ratio of 0.12 indicates undervaluation relative to growth.
• FII holdings increased (+0.16%), showing foreign investor confidence.

⚠️ Limitation

• Stock P/E (6.31) is below industry average (7.98), but reflects cautious valuation.
• ROCE (6.72%) is modest, indicating average capital efficiency.
• Debt-to-equity ratio of 10.8 is high, raising financial risk concerns.
• RSI nearing overbought zone, caution for short-term traders.

📉 Company Negative News

• DII holdings declined (-0.23%), reflecting reduced domestic institutional confidence.
• Quarterly profit variation of -9.97% suggests earnings pressure.

📈 Company Positive News

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

🏢 Industry

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

🧭 Conclusion

• UNIONBANK is trending upward with bullish technical indicators and strong volume support.
• Entry zone: ₹139–₹149; exit zone: ₹155–₹159 for short-term swing trades.
• Long-term investors should monitor debt levels and breakout above ₹159 for sustained upside.