This small finance bank has registered a strong price volume breakout; Do you own it?

This small finance bank has registered a strong price volume breakout; Do you own it?

Indian Market
by 5paisa Research Team Last Updated: 2022-09-05T12:45:03+05:30

Ujjivan Small finance bank has soared over 6% during the initial hour of Monday’s trading session.

The Indian indices are trading higher on Monday, and strong buying is seen in smallcap stocks. Moreover, the financials sector has been outperforming in recent times. Most of the private sector banks have seen buying today, and Ujjivan Small Finance Bank has outperformed its peers and has surged by over 6%.

The shares of Ujjivan Small Finance Bank have registered a price volume breakout from its falling trendline. Currently, the stock is trading above its prior swing high and is above all its key moving averages. With this, it has also retraced above its 23.6% retracement level of the prior downtrend. It had been consolidating in a range of Rs 20-22 in the past many days and has seen strong buying from the market participants as evident from its volume. The volume has jumped nearly 3-fold from its previous trading session, while it is also above the 10-day average volume. 

Along with a positive price pattern, the technical parameters indicate bullishness. The MACD line is converging and is on the verge of indicating a bullish signal. The OBV also is improving, which states strong buying interest. The RSI (68.61) is also in the bullish territory and shows strong strength in the stock. The Elder Impulse system has indicated a fresh buy, while TSI and KST also remain bullish. The Relative Strength (RS) is positive against the broader market. This year, the stock has generated over 18% returns for its investors, while its 3-month performance stands at an astonishing 35%. 

Last month, the banking company has raised its interest rate on fixed deposits to 1.5%. The company states that this will help grow customers' savings through enhanced interest rates. The stock looks attractive for buying from a technical perspective and is expected to trend stronger in the medium term. Keep an eye on this stock to track its further development! 

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