Shares of UCO Bank on Tuesday zoomed nearly 20 per cent, extending their gains for the seventh straight session. The stock soared as much as 19.79 per cent to settle at Rs 29.05 over its previous close of Rs 24.25. The scrip hit an intraday high — also its 52-week high — of Rs 29.10 on BSE. Technical charts hinted at a strong momentum on the counter.
A total of 213.90 lakh shares changed hands today, amounting to a turnover of Rs 58.36 crore. The company’s market capitalisation (m-cap) stood at Rs 34,732.06 crore.
At today’s closing level of Rs 29.05, UCO Bank has gained 176.14 compared to its June low of Rs 10.52.
The stock has jumped 36.30 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has ascended by 120.45 per cent.
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Market analysts largely suggested that the stock looked ‘overbought’ for now. One analyst felt that buy on dips strategy could be opted, given the current bullish scenario.
Rupak De, Senior Technical analyst at LKP Securities, said, “The stock has given a consolidation breakout on the monthly chart, suggesting bullish reversal. Besides, the price rise was backed by heavy participation from investors. Momentum indicator on the monthly RSI (Relative strength index) is in bullish crossover and rising, which again confirms a strong momentum. 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.”
A R Ramachandran from Tips2trades, said, “Fuelled by the rally in Nifty Bank and public sector lenders, 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 Rs 21-22 levels to buy for targets of Rs 30-31.5 in the coming weeks.”
Meanwhile, Indian equity benchmarks surged today, led by gains in state-owned lenders and technology stocks.
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Seven other PSBs such as Central Bank of India, Indian Overseas Bank, Bank of Maharashtra, Punjab & Sind Bank, Union Bank, Bank of India and Punjab National Bank also touched their respective one-year highs today, pulling sub-index Nifty Bank 3.81 per cent higher.