Shares of UCO Bank surged over 7 per cent in Friday’s trade, extending their gains for the tenth straight session. The stock jumped 7.31 per cent to hit a day high — also its 52-week high — of Rs 38.15 over its previous close of Rs 35.55. The resistance for the stock is seen at Rs 38.4 with support at Rs 31.7 levels.
A total of 1.10 crore shares changed hands today, amounting to a turnover of Rs 40.19 crore. The company’s market capitalisation (m-cap) stood at Rs 44,177.27 crore.
At today’s high level of Rs 38.15, UCO Bank has gained 262.64 compared to its June low of Rs 10.52.
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The stock has jumped 64.89 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has ascended by 180.42 per cent.
Market analysts largely remained ‘cautious’ on the counter as it looked ‘overbought’.
Pavitraa Shetty from Tips2trades, said, Today’s upward price movement could be related to the rating upgrade but the stock has run up way too much.
“Acuite Ratings & Research has upgraded its long-term rating from ‘ACUITE AA-‘ to ‘ACUITE AA’ on Rs 1,000 crore Non-Convertible Basel III Compliant Tier-2 Bonds programme of UCO Bank. The outlook is ‘Stable’,” the lender stated in a joint exchange filing.
“UCO Bank is very overbought and investors should keep exiting buy positions at current levels. Next strong resistance will be at Rs 38.4. Strong support will be at Rs 31.7,” Shetty added.
Rupak De, Senior Technical Analyst at LKP Securities, said, “Over the medium term, the stock may witness a rally towards Rs 45-47. However, a buy-on-dips strategy looks better at the current juncture.”
Osho Krishan, Senior Analyst- Technical & Derivative Research at Angel One, said, “The stock has a cluster of resistance at the higher zone starting from Rs 32 to Rs 44-odd zone. One needs to remain cautious in the counter and should trail profits with a strict stop loss.”
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Along with UCO Bank, Indian Overseas Bank (IOB) also hit its one-year level of Rs 38.15 today, defying an overall weakness in the public sector bank stocks. The Nifty PSU Bank index cooled off from its recent high and slipped 1.93 per cent.
Meanwhile, Indian equity benchmarks traded lower in Friday’s deals amid weak cues from the global markets.