Union Bank of India Gains 8.56%: 5 Key Factors Driving the Rally

16 February 2026: Strong Weekly Start with 2.49% Gain

Union Bank of India began the week on a positive note, closing at Rs.183.15, up 2.49% from the previous Friday’s close of Rs.178.70. This gain outpaced the Sensex’s 0.70% rise to 36,787.89 points, signalling early bullish momentum. The stock’s volume of 3,79,721 shares indicated steady investor interest, setting the stage for the week’s rally.

17 February 2026: Multiple 52-Week Highs and Surge in Derivatives Activity

On 17 February, Union Bank of India’s shares surged to an intraday high of Rs.189.65, marking a fresh 52-week peak. The stock closed at Rs.188.90, a 3.14% increase on the day, outperforming the Sensex’s 0.32% gain. This day was characterised by exceptional trading volumes of over 1.28 million shares and a traded value exceeding ₹399 crore, placing the stock among the most actively traded by value.

Notably, call option activity surged with 15,668 contracts traded at the ₹190 strike price, reflecting strong bullish sentiment. Open interest in derivatives rose by 12.45%, signalling fresh long positions. Despite a 37.03% decline in delivery volumes, the high turnover and institutional participation underscored robust market confidence.

MarketsMOJO upgraded the stock’s Mojo Grade to Strong Buy with a score of 81.0 on 2 February, and this rating was reflected in the day’s strong performance. The stock’s technical positioning above all major moving averages confirmed a sustained uptrend.

18 February 2026: Continued Momentum with New 52-Week High at Rs.193.95

The rally extended on 18 February as Union Bank of India hit another 52-week high of Rs.193.95, closing at Rs.193.00, up 2.17% on the day. This marked a three-day winning streak with a cumulative return of 7.27%. The stock outperformed its sector by 0.43% despite the Sensex declining 0.25% to 37,062.35 points.

Trading volumes remained robust at 1.26 crore shares with a traded value of ₹242.45 crore, supported by a remarkable 137.12% increase in delivery volumes compared to the five-day average. This surge in delivery volume indicated strong institutional accumulation and long-term investor conviction.

Open interest in derivatives rose by 10.09%, with futures and options turnover exceeding ₹68,000 crore, reinforcing the bullish positioning. The stock’s technical strength was confirmed by its position above all key moving averages, signalling sustained upward momentum.

19 February 2026: New 52-Week High at Rs.195.75 Amid Market Volatility

Union Bank of India reached a fresh 52-week high of Rs.195.75 on 19 February, closing at Rs.189.45, despite the Sensex falling 0.39% to 36,523.88 points. The stock’s 1.84% decline on the day was a minor pullback after four consecutive days of gains totalling 8.51%. This resilience amid broader market weakness highlighted the stock’s relative strength within the public sector banking sector.

Key fundamentals underpinning this performance include a net profit CAGR of 63.27%, a low gross NPA ratio of 3.06%, and a provision coverage ratio of 76.68%. The bank’s credit-deposit ratio of 81.03% and return on assets of 1.2% further support its robust financial health. Institutional holdings remain strong at 20.04%, reflecting sustained confidence.

20 February 2026: Week Closes Strong at Rs.194.00

The week concluded with Union Bank of India closing at Rs.194.00, up 2.40% on the day and 8.56% for the week. The Sensex also recovered, gaining 0.41% to 36,674.32 points. The stock’s ability to maintain gains above Rs.190 after multiple 52-week highs demonstrates strong support levels and investor confidence.

Volume on the final day was moderate at 3,87,208 shares, reflecting a consolidation phase after the week’s strong rally. The stock’s technical indicators remain bullish, trading above all major moving averages, while its fundamental metrics continue to support a positive outlook.

Key Takeaways

Union Bank of India’s 8.56% weekly gain significantly outpaced the Sensex’s 0.39% rise, reflecting strong stock-specific momentum. The stock’s multiple 52-week highs and sustained trading above all major moving averages indicate robust technical strength.

Institutional interest was a key driver, evidenced by surging delivery volumes and a 12.45% increase in open interest in derivatives. The sharp rise in call option activity further underscores bullish market sentiment.

Fundamentally, the bank’s strong asset quality metrics, including a gross NPA of 3.06% and provision coverage ratio of 76.68%, support confidence in its financial health. The net profit CAGR of 63.27% and attractive valuation ratios such as a PEG of 0.6 and price-to-book of 1.1 reinforce the stock’s appeal.

Despite a minor pullback on 19 February amid broader market weakness, the stock’s resilience and recovery on 20 February highlight solid support levels and investor conviction.

Conclusion

Union Bank of India’s strong weekly performance was driven by a confluence of positive fundamentals, technical momentum, and heightened institutional participation. The stock’s ability to repeatedly hit new 52-week highs amid a mixed market environment demonstrates its leadership within the public sector banking space.

While delivery volume fluctuations suggest some short-term trading activity, the overall accumulation trend and upgraded Mojo Grade to Strong Buy reflect sustained confidence in the bank’s growth prospects. Investors should continue to monitor key financial metrics and market positioning as the stock consolidates its gains above Rs.190.

Union Bank’s large market capitalisation, robust liquidity, and favourable valuation metrics position it well for continued interest from institutional and retail investors alike.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today