Stocks in News – UCO Bank Shares up 11% on NSE after coming out of RBI PCAF – What should investors do now? Analyst suggests THIS

Stocks in News – UCO Bank Shares – In some great news for the investors of UCO Bank, the Reserve Bank of India (RBI) has taken it out of the Prompt Corrective Action Framework (PCAF). This has triggered the stock price movement today as the stock was up by almost 11 per cent on the intraday basis and was trading at Rs 14:15 on the NSE on Thursday. 

Nilesh Jain, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking, said that the share has been moving on the back of the RBI news. He said that this stock has been an underperformer.  

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The 52-week high for this stock is Rs 16.35 on the NSE which the stock achieved on 19 February 2021. The 52-week low of this stock is Rs 10.75 which UCO Bank stocks hit on 22 April 2021. 

He advises any fresh investment in this stock based on this one piece of news. He said that the stock still has to show strength on the charts and there is very little to suggest as of now. He said that there is a strong resistance zone for this stock between Rs 16 and Rs 16.50 and it has made four tops around these levels. 

Any new position on this stock should be made once it crosses this level, the technical analyst said.  

The intraday high of this stock was Rs 14.90 while the intraday low is Rs 14.05. 

The stock was trading with good volumes as over 4.17 cr were trading on the NSE around this time. The traded value of the stock was around Rs 59.71 cr. The total market cap was over 17,097 cr.  

“The performance of the UCO Bank, currently under the Prompt Corrective Action Framework (PCAF) of RBI, was reviewed by the Board for Financial Supervision. It was noted that as per its published results for the year ended March 31, 2021, the bank is not in the breach of the PCA parameters. The bank has provided a written commitment that it would comply with the norms of Minimum Regulatory Capital, Net NPA and Leverage ratio on an ongoing basis and has apprised the RBI of the structural and systemic improvements that it has put in place which would help the bank in continuing to meet these commitments,” UCO Bank said informing the exchanges about the RBI action.  

“Taking all the above into consideration, it has been decided that UCO Bank is taken out of the PCA restrictions subject to certain conditions and continuous monitoring,” it further said. 

On the BSE, the stock was trading at Rs 14.28, up by almost 11.5 per cent from the Wednesday closing price.