Union Bank of India Outlook: Breakout Signals Further Upside

Union Bank of India witnessed a strong breakout after the RBI's monetary policy, surging 3.8% to close at ₹182.50. The RBI kept the repo rate unchanged at 5.25%, maintained a neutral stance, upgraded India's FY27 GDP growth forecast, and lowered the inflation outlook. The policy reinforces expectations of healthy credit demand, stable asset quality, and continued earnings growth for the banking sector, providing a supportive backdrop for PSU banks. Technically, the stock has broken above the ₹178-180 resistance zone after consolidating for nearly a month. It is now trading above its 10 EMA, 20 EMA, 50 SMA, 100 SMA, and 200 SMA, confirming a strong bullish trend across all timeframes. The Bollinger Bands have started expanding after a squeeze, indicating the beginning of a fresh directional move, while the RSI has climbed above 66, reflecting strengthening momentum without entering extreme overbought territory. The breakout was also accompanied by improved volumes, adding credibility to the move. As long as the stock holds above ₹178, the positive momentum is likely to continue. Immediate resistance is placed at ₹190, followed by the psychological ₹200 level. A decisive close above ₹200 could trigger the next leg of the rally towards ₹210-215 over the next 2-3 months. On the downside, ₹171-172 remains a strong support zone, while ₹168 should act as the positional stop-loss. Overall, the combination of improving fundamentals, a supportive RBI policy, and a strong technical breakout suggests Union Bank remains well-positioned for further upside. $UNIONBANK