An Opportunity Awaits for Traders in This Private Bank Stock

  • Stock Market Analysis

About the company:

City Union Bank Ltd (NS: CTBK ) is a private-sector Indian bank headquartered in Kumbakonam, Tamil Nadu (NS: TNNP ). The bank was initially named Kumbakonam Bank Limited and was incorporated on October 31, 1904. The bank preferred the role of a regional bank in the Thanjavur district of Tamil Nadu. The stock is trading at a discount of 11.8% to its 52-week high level. The 52-week high and low range is Rs 200 – Rs 143.

Technical Observations:

One week time frame: (Chart 1)

On a weekly time frame, from the chart below, we can see that CUBL stock has broken out of a Falling Channel. High volumes support the upward move witnessed in the share since last two months. Also, note that the scrip is above the 50-day EMA line. Relative Strength Index (or RSI) is above 60 and the Moving Average Convergence Divergence (or MACD) line has crossed the signal line from below. It denotes positive momentum on the scrip. Long-term investors can enter at current levels. They should maintain a stop loss at Rs 142 (previous swing low) on a weekly closing basis.
One day time frame: (Chart 2)

On a daily time frame, you should note from the below chart that CUBL scrip has made a Rounding Bottom formation. On October 25, 2021, the stock broke above an important neckline of Rs 175. Here also heavy volumes accompany the upward move. RSI is above 70 and the MACD line is above the signal line. It indicates positive momentum on the stock. Positional traders should make sure that the current upward move is sustained before entering. They should enter once the share has crossed and stays above Rs 175 level which should act as a support level. Positional traders should keep the stop loss at Rs 157 on a daily closing basis.

We anticipate the CUBL stock to maintain positive bias and head higher from current levels. Short-term traders should take a position above Rs 176 level and keep a strict stop loss of Rs 169 on a daily closing basis. Our view will negate below this level. 

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  • Raja Sekhar Velisetti @Raja Sekhar Velisetti
    I have been adding Pvt. and Public Banks, some NBFCs from Feb '21. I put a buy GTT on CUB at 120. I did not check on them, but after your post when I see, it did not even come to 120. I missed CUB. May be next time. Thanks for sharing.
    Like 5
  • Uday Ramesh @Uday Ramesh
    honestly indian bank at good eps and pe of 6 is one of the best psu stocks ... much ignored one
    Like 3
  • Tr Surendhar @Tr Surendhar
    Thank u sir
    Like 1
  • Vivek Pokhriyal @Vivek Pokhriyal
    Sameer sir , thanks to prosperous us. Your valuable guidance related stocks is much accurate and prompt
    Like 2

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