UCO Bank shares slip over 4% today; here’s what analysts say

Shares of UCO Bank extended their fall for the second straight session on Tuesday. The stock fell as much as 4.06 per cent to hit a day low of Rs 19.85 compared to its previous close of Rs 20.69. Considering the day’s low level, UCO Bank traded 11.38 per cent lower from its 52-week high of Rs 22.40, hit on November 25.

A total of 11.80 lakh shares changed hands today, amounting to a turnover of Rs 2.38 crore on BSE. The company’s market capitalisation (m-cap) stood at Rs 24,043.43 crore.

The state-owned lender’s stock has slipped 1.71 per cent over the previous five sessions. However, on a year-to-date (YTD) basis, it has gained 52.27 per cent.

Also Read | Vedanta shares can hit Rs 365-385 levels in 3-6 months. Here’s the trading strategy

Market analysts largely remained ‘cautious’ on the stock, while keeping “a strict trailing stop loss” for traders.

Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One Ltd, said, “UCO Bank has witnessed a vertical rally from the level of Rs 14.50 and has gained over 45 per cent in the last couple of trading sessions. The stock has seen such traction after a long duration of consolidation. 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. As far as levels are concerned, the support base has slightly moved upwards towards Rs 18-18.50, followed by Rs 16. While the sturdy hurdle is placed near the Rs 22-odd zone and a weekly closure above the same could only add a fresh leg to the rally.

Krishan also stated that traders should remain “cautious on the counter for the time being” and suggested “keeping a strict trailing stop loss.”

Also Read | Laurus Labs shares hit 52-week low amid market rally, here’s why

A R Ramachandran from Tips2trades said, “A majority of the PSU bank shares are at their yearly highs including UCO Bank. Technically, the stock is overbought and investors should book profits at current levels and wait for a dip near Rs 15.10-15.70 to buy for targets of Rs 20-21.8 in the near term.”

Meanwhile, Indian equity benchmarks touched fresh all-time highs today, extending their gains for the sixth straight session.

Comments (0)
Add Comment