Union Bank of India Surges on Exceptional Volume, Signals Strong Accumulation

Exceptional Volume and Price Action

On 18 Feb 2026, Union Bank of India (symbol: UNIONBANK) recorded a total traded volume of 1.26 crore shares, translating to a traded value of approximately ₹241.65 crores. This volume represents a significant spike compared to its recent averages, with delivery volumes on 17 Feb rising by an extraordinary 137.12% against the five-day average delivery volume. Such a surge in participation indicates strong conviction among investors, particularly institutional players, who appear to be accumulating shares aggressively.

The stock opened at ₹190.00 and touched an intraday high of ₹193.99, marking a 2.7% gain from the previous close of ₹188.89. The last traded price (LTP) stood at ₹192.16 as of 10:38 AM, reflecting a day change of 1.88%. Notably, the stock has been on a three-day consecutive gain streak, delivering a cumulative return of 7.47% during this period. This outperformance is further highlighted by the stock’s 1.74% one-day return, which surpassed the public sector bank sector’s 0.84% gain and contrasted with the Sensex’s marginal decline of 0.23% on the same day.

Technical Strength and Moving Averages

Union Bank’s price action is supported by strong technical indicators. The stock is trading comfortably above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This alignment suggests a sustained uptrend and healthy market sentiment. The new 52-week high of ₹193.99 hit today reinforces the bullish momentum and signals potential for further upside.

Liquidity remains robust, with the stock’s traded value comfortably supporting trade sizes up to ₹5.38 crores based on 2% of the five-day average traded value. This level of liquidity is favourable for both retail and institutional investors, ensuring smooth execution of large orders without significant price impact.

Fundamental and Market Positioning

Union Bank of India is a large-cap public sector bank with a market capitalisation of ₹1,45,649 crores. The bank’s mojo score stands at a robust 81.0, reflecting strong fundamentals and positive market sentiment. Its mojo grade was recently upgraded from Buy to Strong Buy on 2 Feb 2026, signalling improved confidence from analysts and market observers. The market cap grade is 1, indicating the stock’s significant weight and influence within the banking sector.

The bank’s consistent performance and improving financial metrics have attracted renewed investor interest, particularly in the context of a recovering banking sector. The stock’s outperformance relative to its sector peers and the broader Sensex index highlights its resilience and potential as a key beneficiary of economic growth and credit expansion in India.

Accumulation and Distribution Signals

The surge in delivery volumes and sustained price gains over the past three sessions point to strong accumulation by market participants. Delivery volume of 1.17 crore shares on 17 Feb, up 137.12% from the five-day average, is a clear indication that investors are not merely trading intraday but are holding positions, signalling confidence in the stock’s medium-term prospects.

Such accumulation is often a precursor to further price appreciation, as it reflects genuine demand rather than speculative trading. The stock’s ability to maintain gains above key moving averages further supports the view that the current rally is backed by solid buying interest rather than short-term momentum alone.

Sector and Market Context

The public sector banking sector has shown signs of recovery, supported by improving asset quality and credit growth. Union Bank’s outperformance relative to the sector’s 0.84% gain on 18 Feb underscores its leadership position and investor preference within the segment. While the Sensex declined marginally by 0.23%, Union Bank’s positive returns highlight its defensive qualities and potential as a portfolio stabiliser amid broader market volatility.

Investors should note that the stock’s liquidity and market cap support large-scale participation, making it suitable for both long-term investors and active traders seeking exposure to a fundamentally strong public sector bank.

Investor Takeaway and Outlook

Union Bank of India’s recent trading activity offers compelling evidence of strong investor conviction and positive momentum. The combination of exceptional volume, rising delivery participation, and price appreciation above key technical levels suggests that the stock is in a phase of robust accumulation. This is further validated by the mojo grade upgrade to Strong Buy and the high mojo score of 81.0, which reflect favourable fundamental and technical assessments.

For investors seeking exposure to the public sector banking space, Union Bank presents an attractive proposition given its large-cap status, liquidity, and improving market positioning. While the broader market faces intermittent volatility, the bank’s ability to outperform its sector and the Sensex indicates resilience and potential for sustained gains.

However, investors should remain mindful of macroeconomic factors such as interest rate movements, credit growth trends, and regulatory developments that could influence banking sector dynamics. Continuous monitoring of volume trends and price action will be essential to gauge the sustainability of the current rally.

Conclusion

Union Bank of India’s surge in volume and price on 18 Feb 2026 marks a significant milestone in its recent market journey. The stock’s strong accumulation signals, technical strength, and fundamental upgrades position it favourably for further appreciation. As liquidity remains ample and investor participation intensifies, Union Bank is poised to remain a key focus for market participants looking to capitalise on the public sector banking sector’s recovery and growth potential.

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