Union Bank of India Gains 3.44%: 5 Key Factors Driving the Week’s Momentum

5 January: New 52-Week High and Intraday Surge

Union Bank of India began the week on a strong note, hitting a new 52-week high of Rs.161.25 during the session. The stock closed at Rs.162.40, up 3.57% from the previous close, significantly outperforming the Sensex which declined 0.18% to 37,730.95. Intraday, the share price peaked at Rs.162.20, marking a 3.06% gain on the day. This rally was supported by the stock trading above all major moving averages (5-day through 200-day), signalling robust technical momentum.

The stock’s consecutive gains over two days amounted to a cumulative 5.34% rise, reflecting strong investor interest. The dividend yield remained attractive at 3%, complementing the capital appreciation. Despite a subdued broader market, Union Bank’s outperformance highlighted its leadership within the public sector banking segment.

6 January: Fresh 52-Week High and Exceptional Trading Volume

On 6 January, Union Bank of India extended its rally, reaching a new 52-week high of Rs.167.30, a 3.02% intraday increase. The stock closed at Rs.165.65, up 2.00% on the day, while the Sensex declined 0.19% to 37,657.70. This marked the third consecutive day of gains, with the stock delivering an 8.63% return over this period.

Trading volumes surged dramatically, with over 1.05 crore shares changing hands, translating to a traded value exceeding ₹175 crores. Delivery volumes jumped 81.26% compared to the five-day average, indicating strong accumulation rather than speculative trading. The stock’s liquidity profile supports large institutional trades, with trade sizes up to ₹6.14 crores feasible without significant price impact.

Despite a recent downgrade to a ‘Hold’ rating by MarketsMOJO, the stock’s technical strength remained evident, trading above all key moving averages and outperforming sector peers by over 2% on the day. The market capitalisation stood at ₹1,26,817.09 crores, underscoring its large-cap status within the public sector banking universe.

7 January: Modest Gains Amid Market Stability

On 7 January, Union Bank of India’s stock price edged up by 0.39% to close at Rs.166.30, with volumes moderating to 7.44 lakh shares. The Sensex posted a marginal gain of 0.03%, closing at 37,669.63. The stock maintained its position above all major moving averages, continuing its technical uptrend. This day’s modest gain followed the strong rally earlier in the week, suggesting a consolidation phase as investors digested recent gains.

8 January: Intraday Low and Price Pressure Amid Market Caution

The stock faced a setback on 8 January, falling 3.01% to close at Rs.161.30, with an intraday low of Rs.160.60. This decline marked a break in the four-day winning streak and underperformed the Sensex’s 1.41% drop to 37,137.33. The stock’s intraday low was 4.14% below its 52-week high of Rs.167.30, signalling profit-taking and short-term selling pressure.

Despite the decline, the share price remained above all key moving averages, indicating the longer-term uptrend remained intact. The broader market’s cautious tone and the stock’s relative underperformance by 1.79% versus its sector suggested sensitivity to market volatility. The Mojo Score remained steady at 64.0 with a ‘Hold’ rating, reflecting a balanced outlook amid mixed signals.

9 January: Week Closes with a Mild Recovery

Union Bank of India ended the week on a positive note, gaining 0.56% to close at Rs.162.20. The Sensex declined 0.89% to 36,807.62, extending its weekly losses. The stock’s recovery on the final trading day helped limit weekly downside and reinforced its outperformance versus the benchmark. Trading volume increased to over 10 lakh shares, indicating renewed buying interest after the previous day’s dip.

Key Takeaways

Strong Relative Performance: Union Bank of India outperformed the Sensex by over 6% during the week, closing with a 3.44% gain versus the benchmark’s 2.62% decline. This highlights the stock’s resilience amid broader market weakness.

Technical Momentum: The stock consistently traded above all major moving averages throughout the week, signalling sustained bullish momentum and technical strength.

Volume and Liquidity: Exceptional trading volumes, especially on 6 January, with delivery volumes surging 81.26%, indicate strong accumulation and investor confidence.

Short-Term Correction: The intraday low on 8 January reflected profit-taking and short-term price pressure, but the longer-term uptrend remains intact.

Mojo Score and Rating: The Mojo Score remained steady at 64.0 with a ‘Hold’ rating, reflecting a balanced view amid strong technicals but cautious fundamental outlook.

Market Capitalisation: With a market cap of ₹1,26,817.09 crores, Union Bank is a large-cap stock, attracting institutional interest and supporting liquidity.

Conclusion

Union Bank of India demonstrated notable strength during the week ending 9 January 2026, marked by fresh 52-week highs, robust volume, and consistent outperformance versus the Sensex. Despite a brief correction on 8 January, the stock’s technical indicators and liquidity profile remain favourable, supporting the ongoing uptrend. The ‘Hold’ Mojo rating suggests a cautious stance, balancing the stock’s momentum against valuation and sector dynamics. Investors should monitor upcoming corporate developments and broader market conditions to gauge the sustainability of this momentum.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →