Union Bank of India Gains 4.60%: 3 Key Factors Driving the Week’s Momentum

Jan 31 2026 02:01 PM IST
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Union Bank of India delivered a strong weekly performance, rising 4.60% from Rs.172.70 to Rs.180.65 between 27 and 30 January 2026, significantly outperforming the Sensex’s 1.62% gain over the same period. The stock’s momentum was supported by robust intraday highs, a surge in derivatives open interest, and a new 52-week peak, reflecting growing investor confidence and positive technical signals amid a cautiously optimistic market backdrop.

Key Events This Week

27 Jan: Stock opens strong at Rs.175.55 (+1.65%)

28 Jan: Intraday high of Rs.181.10 with 3.47% surge; significant open interest rise

29 Jan: New 52-week high at Rs.183.4 despite slight daily dip

30 Jan: Week closes at Rs.180.65 (+0.64%)

Week Open
Rs.172.70
Week Close
Rs.180.65
+4.60%
Week High
Rs.183.40
Sensex Gain
+1.62%

27 January 2026: Positive Start with 1.65% Gain

Union Bank of India commenced the week on a positive note, closing at Rs.175.55, up 1.65% from the previous close. This gain outpaced the Sensex’s 0.50% rise to 35,786.84 points, signalling early bullish sentiment. The stock’s volume of 864,886 shares indicated healthy investor interest, setting the tone for the week’s upward trajectory.

28 January 2026: Intraday High and Surge in Derivatives Activity

On 28 January, the stock demonstrated robust intraday strength, reaching a high of Rs.181.10, a 3.16% increase from the prior close, and closing with a 3.47% gain at Rs.182.00. This performance notably outpaced the Sensex’s 1.12% advance and the public sector banking sector’s 2.34% rise, underscoring Union Bank’s relative strength.

Concurrently, the derivatives market saw a significant surge in open interest, rising by 2,580 contracts or 10.86% to 26,342. This increase, alongside a trading volume of 20,338 contracts and a combined futures and options value exceeding ₹35,852.57 lakhs, indicated fresh positions and heightened market participation. The stock’s proximity to its 52-week high of Rs.182.95, trading just 1.02% below, reinforced the bullish technical setup.

Investor confidence was further supported by the stock trading above all key moving averages (5, 20, 50, 100, and 200 days), a classic indicator of sustained upward momentum. Delivery volumes also rose 1.34% over the five-day average, suggesting accumulation rather than short-term trading.

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29 January 2026: New 52-Week High Amid Market Softness

Union Bank of India reached a new 52-week high of Rs.183.40 on 29 January, marking a 72.1% increase from its 52-week low of Rs.106.60. Despite a slight daily decline of 1.37% to close at Rs.179.50, the stock maintained a strong technical position, trading above all major moving averages.

The broader market was less favourable, with the Sensex falling 0.73% to 81,740.90 points. However, sectoral indices such as NIFTY PSE and NIFTY CPSE hit new highs, reflecting pockets of strength within public sector banking. Union Bank’s fundamentals remain robust, with a gross NPA ratio of 3.06%, net NPA at 0.51%, and a credit-deposit ratio of 81.03%. The bank’s return on assets stands at 1.2%, supported by a price-to-book value of 1.1 and a PEG ratio of 0.6, indicating attractive valuation relative to earnings growth.

Institutional holdings at 20.04% further underscore confidence from long-term investors. The stock’s mojo score remains at 78.0 with a Buy grade, upgraded from Hold in October 2025, reflecting improved fundamentals and market sentiment.

30 January 2026: Week Closes with Modest Gain

Union Bank of India ended the week at Rs.180.65, up 0.64% on the day and closing the week with a 4.60% gain. The Sensex declined 0.22% on the day, closing at 36,185.03, highlighting the stock’s outperformance. Volume surged to 1,560,662 shares, indicating sustained investor interest. The stock’s resilience amid a slightly weaker market reflects its strong technical and fundamental positioning.

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Daily Price Performance vs Sensex

Date Stock Price Day Change Sensex Day Change
2026-01-27 Rs.175.55 +1.65% 35,786.84 +0.50%
2026-01-28 Rs.182.00 +3.67% 36,188.16 +1.12%
2026-01-29 Rs.179.50 -1.37% 36,266.59 +0.22%
2026-01-30 Rs.180.65 +0.64% 36,185.03 -0.22%

Key Takeaways

Strong Outperformance: Union Bank of India’s 4.60% weekly gain significantly outpaced the Sensex’s 1.62%, highlighting the stock’s relative strength amid a mixed market environment.

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

Derivatives Market Activity: A notable 10.86% surge in open interest on 28 January, combined with rising volumes, suggests fresh directional bets and increased market participation.

New 52-Week High: The stock’s peak at Rs.183.40 on 29 January marks a significant milestone, reflecting strong fundamentals and positive sectoral trends despite a softer broader market.

Fundamental Strength: Robust asset quality metrics, attractive valuation ratios, and a healthy credit-deposit ratio underpin the stock’s upward trajectory.

Institutional Confidence: With 20.04% institutional holdings and a Mojo Score upgrade to Buy, the stock enjoys strong backing from long-term investors and analysts.

Conclusion

Union Bank of India’s performance over the week ending 30 January 2026 reflects a compelling combination of technical strength, fundamental robustness, and growing market interest. The stock’s ability to outperform the broader market and its sector peers, coupled with a new 52-week high and increased derivatives activity, underscores its position as a key player in the public sector banking space. While the broader market showed some volatility, Union Bank’s sustained momentum and positive rating upgrade provide a solid foundation for continued investor attention. Market participants should continue to monitor sectoral developments and broader economic indicators to gauge the stock’s trajectory in the coming weeks.

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