Ujjivan Small Finance Bank Limited (UJJIVANSFB) Stock - Complete Technical Analysis - Sep 27, 2024

Ujjivan Small Finance Bank: Key Technical Analysis & Trading Insights

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Welcome to todays technical analysis of Ujjivan Small Finance Bank Limited, which is currently trading at 40.9. Starting with the fundamental indicators, the stock shows a P/E ratio of 6.29, a book value of 28.7, and a dividend yield of 3.66%. With a ROCE of 11.1% and a ROE of 26.7%, these fundamentals suggest an attractive investment opportunity, but we will focus on the technical aspects.

Now, let's discuss the key support and resistance levels. The stock has strong support at 40, with further support around 38.84 and 34.14. On the resistance front, we see immediate resistance at around 43.54, with the next levels at 46.07 and 48.24.

In terms of technical indicators, the RSI is currently at 33.78, indicating that the stock is nearing oversold conditions, potentially signaling a buying opportunity. The MACD is negative, reflecting bearish momentum. The ADX at 27.89 indicates a developing trend, while the Stochastic readings point to a bearish trend, with the %K at 5.23. Additionally, the Awesome Oscillator and Williams Percent Range reflect bearish momentum and potential continued selling pressure.

From a chart pattern perspective, the stock appears to be in a corrective phase, as evidenced by recent price movements. It is trading significantly below its 52-week high of 63.0, which it reached in December, highlighting its recent downtrend. However, being only slightly above the 52-week low of 40.0 indicates that the stock may find some support in this range.

Overall, while the fundamentals present an attractive case for investment, the technical indicators suggest a cautious approach in the short term. Traders should closely monitor the support levels and watch for potential bullish reversals indicated by the RSI. Always conduct thorough research before making trading decisions.