On November 4, 2024, the share price of Union Bank Of India experienced a significant decline of -3.05%, closing at ₹114.25 after opening at ₹118.85. Throughout the trading session, the stock reached a daily high of ₹118.85 and dipped to a low of ₹113.20 amidst a backdrop of broader market volatility.
| Table of Contents |
|---|
| Technical Analysis |
| Key Points |
| Ownership |
| Comparison with Peers |
| Market Data Highlights |
| Conclusion |
| FAQ |
Technical Analysis
The current state of Union Bank Of India stock reveals a mixed technical picture. The stock is trading above the 10 and 20 days Simple Moving Average (SMA), which are considered short-term indicators of bullish activity. However, it remains below the 5, 50, 100, and 300 days SMA, indicating a stronger trend is needed for sustained recovery. Support levels are observed at the 10 and 20 days SMA, with significant resistance currently present at the 5, 50, 100, and 300 days SMA.
Key Points
Data indicates a stark decline in trading volume for Union Bank Of India, with both NSE and BSE volumes down by -61.43% compared to the previous trading session. From a fundamental analysis perspective, the bank reports a Return on Equity (ROE) of 15.64% and a Return on Assets (ROA) of 1.02%. The stock’s Price to Earnings (P/E) ratio stands at 5.77, while the Price to Book (P/B) ratio is at 0.83. Notably, the median one-year forecasted upside for Union Bank shares is impressive at 33.04%, with a target price of ₹152.00.
Ownership
Ownership dynamics reveal that Union Bank Of India has 0.00% promoter holding, with 7.87% in mutual fund (MF) hands and 6.89% held by Foreign Institutional Investors (FIIs). This represents a decrease in MF holding from 7.92% in June to the current level in September, while FII holdings have declined from 7.37% to 6.89% in the same timeframe. These ownership trends might suggest investors’ cautious sentiment amidst broader market conditions.
Comparison with Peers
In the current market environment, Union Bank Of India’s share price decline of -3.05% mirrors similar trends observed in its peers, such as Canara Bank, IDBI Bank, and Indian Bank. Meanwhile, other financial institutions like Indusind Bank are showing resilience with positive movements. The broader market context indicates that benchmark indices such as Nifty and Sensex have been affected as well, with declines of -1.73% and -1.61%, respectively.
Market Data Highlights
As of the latest trading session, the Sensex is trading at ₹78,440.23, reflecting a loss of -1.61%. Within this tumultuous context, Union Bank Of India saw its shares reach a high of ₹118.85 and drop to a low of ₹113.20 on November 4, 2024.
Conclusion
The ongoing decline in Union Bank Of India’s stock, amidst uncertain market conditions, may signal a trend reversal following its previous downtrend. Based on technical analysis and changes in ownership, the stock appears positioned to adapt, although it needs to maintain support levels and overcome resistance to regain upward momentum.
FAQ
Q1: What factors led to the decline in Union Bank Of India’s stock price?
A1: The decline can be attributed to overall market turmoil affecting investor sentiment while performance metrics indicate mixed results amidst decreasing trading volumes.
Q2: How does the stock’s performance compare with its peers?
A2: Union Bank’s performance is on par with several benchmarks, showing declines similar to Canara Bank and IDBI Bank while Indusind Bank experiences growth.
Q3: What is the outlook for Union Bank’s stock based on current analyses?
A3: The stock has a forecasted upside potential of 33.04% suggesting that long-term investors may find value, provided short-term challenges are addressed.
