Today, I will talk about another PSU bank, UCO Bank, which has given very good returns in the recent past. This stock almost doubled in the recent positive trend in the banking stocks. In the last month, it has again gone negative because of corrections in this stock and decreasing profit margins and net income. Whereas in the previous month, UCO bank stock gave 16% returns and 82% returns in the last six months if we don't consider last month. In the last year, this stock has almost doubled thus giving a great return to its investors. But now this stock has become overpriced/overvalued so to expect a similar positive trend shortly is difficult.
The trend on the chart is negative for this stock as it has started decreasing after achieving the Rs 68 mark on the chart. Now it is trading at Rs 56. If we follow this trend then this stock may make new lower marks shortly so this stock is not favourable chart-wise and performance-wise. We need to wait for some correction in this stock and improvement in its performance to again invest in it again. Mutual funds and FIIs both have decreased their investment in UCO bank so the trend is not positive for this stock. The PE of this stock is much higher than its peers in the segment.
UCO bank enjoys great support near Rs 55 if it goes below this price then it will move downwards. So it is better to stay away from UCO bank it again starts a positive trend.
Present Price- 56.45){kind=link}