Union Bank of India share price traded over a percent lower on Wednesday amid heavy selling momentum. The PSU stock declined as much as 1.35% to ₹168.10 apiece on the BSE.
The fall in Union Bank of India shares came after a sharp 3% rally in the previous session. Trading volumes in Union Bank of India shares also spurred.
Union Bank of India share price has remained in a consolidation phase since last one month. The PSU bank stock has risen just 1.7% in one month, while it has declined over 9% in three months.
Union Bank of India share price has gained 14% in six months, and has risen 10% in one year. The PSU stock has delivered multibagger returns of 136% in three years, while it has surged 371% over the past five years.
How to trade in Union Bank of India shares?
Ruchit Jain, Head, Equity Technical Research, Wealth Management, Motilal Oswal Financial Services said that the immediate resistance for Union Bank of India share price is seen around ₹172 level. A breakout above this could lead to a short term upmove.
Union Bank of India shares witnessed strong traction on Tuesday, in line with gains seen across other PSU banking stocks.
Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, noted that Union Bank of India’s share price is witnessing profit booking on Wednesday following the previous session’s sharp upmove.
“Technically, Union Bank of India’s share price is hovering near the key resistance level of ₹170, which coincides with the recent high and the 89-day exponential moving average (89-DEMA). Sustained upside momentum would require a decisive move above ₹170, which could potentially trigger a rally towards the ₹180–183 range,” Bhosale said.
On the downside, the 200-day simple moving average (200-DSMA) around ₹160 is expected to act as immediate support for the stock, he added.
Sudeep Shah – Head of Technical and Derivatives Research at SBI Securities highlighted that Union Bank of India share price has been consolidating within the ₹160 – ₹172 range since 25th May, indicating a period of base formation.
“During this phase, the 200-day EMA has repeatedly acted as a strong support zone, reinforcing the stock’s medium-term strength. On the weekly chart, Union Bank of India stock price continues to trade between its 20-week and 50-week EMA band, reflecting a lack of directional bias. Momentum indicators also suggest consolidation, with the RSI moving sideways and the ADX trending lower, highlighting subdued volatility,” said Shah.
According to him, a decisive breakout above ₹172 could trigger fresh upside momentum towards ₹175, while the ₹161 – ₹163 zone is expected to provide strong support on declines.
At 10:30 AM, Union Bank of India share price was trading 0.85% lower at ₹168.95 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
