Union Bank of India

We recommend a sell on Union Bank of India stock from a short-term trading perspective. It is apparent from the charts of this stock that it had been on an intermediate-term uptrend from its July low of Rs 96 till it encountered resistance at Rs 173 in late November. However, the stock reversed direction after encountering resistance around Rs 170 in January. Since then, the stock has been on a medium-term down trend. On February 16, the stock tumbled by 5 per cent penetrating its intermediate-term uptrend line. On February 17, it broke through a significant support level of Rs 140 by plummeting 4 per cent accompanied with high volume. The stock is trading well below its 21- and 50-day moving averages. The daily relative strength index is featuring in the bearish zone. Considering the breakthrough, we are bearish on the stock from a short-term perspective. We expect its decline to continue until it hits our price target of Rs 120. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 142.