Shares of UCO Bank on Tuesday soared nearly 15 per cent, extending their gains for the eighth straight session. The stock zoomed 14.63 per cent to settle at Rs 33.30 over its previous close of Rs 29.05. The scrip hit an intraday high — also its 52-week high — of Rs 34.45 on BSE. The resistance for the stock is seen at Rs 32 mark with support at Rs 24 levels.
A total of 3.42┬аcrore shares changed hands today, amounting to a turnover of Rs 109.07 crore. The company’s market capitalisation (m-cap) stood at Rs 39,813.34 crore.
At today’s closing level of Rs 33.30, UCO Bank has gained 216.54 compared to its June low of Rs 10.52.
The stock has jumped 45.73 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has ascended by 151.70 per cent.
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Market analysts largely remained ‘cautious’ on the counter as it looked ‘overbought’. One analyst felt that a correction can’t be ruled out while another analyst suggested booking profits at current levels.
Osho Krishan, Sr. Analyst- Technical & Derivative Research at Angel One, said, “UCO Bank has witnessed a vertical rally from the level of Rs 14.50 and has gained over 130 per cent in the last couple of trading weeks. The stock has surged in line with the rally in the PSU banks and has generated a massive return in a nudge of a time. The trend seamlessly has changed, but post such a rally one should not rule out the potential of cool-off or correction in the counter. The support base has slightly moved upwards towards the Rs 24-odd zone. At present, the stock has a cluster of resistance at the higher zone starting from Rs 32 to Rs 44-odd zone. Looking at the recent price action, the scrip is likely to continue its northward journey, but one needs to remain cautious in the counter and should trail profits with a strict stop loss.”
A R Ramachandran from Tips2trades, said, “UCO Bank has scaled newer highs since the past few sessions. The stock is very overbought and investors should book profits at current levels and wait for 21-22 levels to initiate a buy.”
Manoj Dalmia, Founder and Director of Proficient Equities, said, “Aggressive investors can take entry at current levels with a small stop loss. Tide for the stock is around Rs 36 from current levels.” Defensive investors can, however, wait for some retracement, he 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.”
Sharing views on the public sector banks’ performance, AK Prabhakar, Head of Research at IDBI Capital, said, “It seems that the PSU banks rally won’t stop anytime soon. Those state-owned bank stocks — below Rs 50 — would do very well, given the attractive pricing. Amidst all this euphoria for PSBs, people tend to go towards the lower priced stocks.”
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Meanwhile, Indian equity benchmarks settled on a higher note, led by gains in technology, consumer durables and metal stocks.
Eight other PSBs such as State Bank of India, Punjab & Sind Bank, Indian Overseas Bank, Bank of Maharashtra, Indian Bank, Union Bank, Central Bank of India and Punjab National Bank also touched their respective one-year highs today, pulling sub-index Nifty Bank 0.56 per cent higher.
