Union Bank of India is Public Sector Undertaking bank. The reasons why it becomes right candidate for "Sell on Rise"
1) After steadily fall from 280 Rs levels from 01st January, it found some support around 210. From these levels, it has risen sharply to 233.
2) Around 236-238 Rs levels, a resistance is seen. Also the recent rally is not backed by strong volumes which indicate it is more of a short covering rally. (See Chart 1)
3) One may sell the bank stock around 236 with stop-loss placed at 243 - above 241 Rs resistance. One may place target price around 228 and then 224 where it is likely to find some support.
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