Technical Trend Overview: From Bullish to Mildly Bullish
Recent analysis shows that City Union Bank’s overall technical trend has softened from a robust bullish phase to a mildly bullish one. This subtle change suggests that while the stock retains upward momentum, the pace of gains may moderate in the near term. The daily moving averages remain bullish, supporting the stock’s underlying strength, but weekly indicators such as the MACD and KST have turned mildly bearish, indicating some short-term pressure.
The stock closed at ₹284.20 on 20 Feb 2026, down 1.11% from the previous close of ₹287.40. The intraday range was between ₹282.20 and ₹290.55, showing some volatility but no decisive directional breakout. The 52-week high stands at ₹319.95, while the 52-week low is ₹144.00, highlighting the stock’s strong long-term appreciation.
MACD Signals: Divergence Between Weekly and Monthly Trends
The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD is mildly bearish, signalling a potential slowdown in upward momentum or a short-term correction. Conversely, the monthly MACD remains bullish, suggesting that the longer-term trend is intact and that any weakness may be temporary.
This divergence between weekly and monthly MACD readings is critical for traders and investors alike. It implies that while short-term traders might face some headwinds, long-term holders can remain confident in the stock’s growth trajectory.
RSI and Bollinger Bands: Neutral to Mildly Bullish Signals
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This indicates that the stock is neither overbought nor oversold, providing a balanced backdrop for price action.
Bollinger Bands, however, are mildly bullish on both weekly and monthly timeframes. The stock price is trading near the upper band, which often suggests sustained buying interest and potential for further upside, albeit with caution due to the risk of short-term pullbacks.
Moving Averages and KST: Daily Strength Meets Weekly Caution
Daily moving averages continue to support a bullish outlook, with the stock price comfortably above key averages such as the 50-day and 200-day moving averages. This alignment typically signals a healthy uptrend and investor confidence.
In contrast, the Know Sure Thing (KST) indicator is mildly bearish on the weekly chart but bullish on the monthly chart. This again reflects a short-term cooling off within a longer-term positive trend, reinforcing the theme of consolidation rather than reversal.
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On-Balance Volume and Dow Theory: Mixed Signals on Volume and Trend Confirmation
The On-Balance Volume (OBV) indicator is mildly bearish on both weekly and monthly charts, suggesting that volume trends are not fully supporting the recent price gains. This could indicate some distribution or profit-taking by market participants, which warrants close monitoring.
However, Dow Theory assessments remain bullish on both weekly and monthly timeframes, providing a strong endorsement of the prevailing uptrend. This theory’s confirmation of higher highs and higher lows supports the notion that the stock’s fundamental trend remains positive despite short-term fluctuations.
Comparative Returns: Outperforming the Sensex Over Multiple Horizons
City Union Bank’s price performance relative to the Sensex underscores its strong market position. Over the past week, the stock declined by 0.68%, outperforming the Sensex’s 1.41% fall. Over one month, the bank gained 5.18% while the Sensex dropped 0.90%, reflecting resilience amid broader market weakness.
Year-to-date, the stock is down 2.17%, slightly better than the Sensex’s 3.19% decline. More impressively, over one year, City Union Bank has surged 80.22%, vastly outpacing the Sensex’s 8.64% gain. The three-year and five-year returns stand at 105.05% and 72.71% respectively, compared to the Sensex’s 35.24% and 62.11%. Over a decade, the bank has delivered a remarkable 312.33% return, well ahead of the Sensex’s 247.96%.
Mojo Score Upgrade: From Hold to Buy
Reflecting these technical and fundamental strengths, MarketsMOJO has upgraded City Union Bank’s Mojo Grade from Hold to Buy as of 18 Feb 2026. The current Mojo Score stands at 72.0, signalling a favourable outlook. The Market Cap Grade remains at 3, indicating a mid-sized market capitalisation within the private sector banking industry.
This upgrade highlights improved confidence in the stock’s medium-term prospects, supported by solid price momentum and resilient fundamentals.
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Investor Takeaway: Balanced Optimism Amid Technical Nuances
For investors, City Union Bank presents a compelling case of sustained long-term growth tempered by short-term technical caution. The mildly bullish overall trend, supported by daily moving averages and monthly MACD, suggests that the stock remains in an uptrend. However, weekly bearish signals from MACD, KST, and OBV indicate that some consolidation or minor corrections could occur before the next leg higher.
Given the stock’s strong relative performance against the Sensex and the recent upgrade to a Buy rating by MarketsMOJO, investors may consider accumulating shares on dips while maintaining vigilance on weekly technical signals. The neutral RSI and mildly bullish Bollinger Bands further support a watchful but optimistic stance.
In summary, City Union Bank Ltd. is navigating a phase of technical recalibration within a fundamentally strong framework, offering opportunities for disciplined investors who can balance momentum with risk management.
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