Since the beginning of this week, the share price of UTI AMC has been rapidly increasing. The stock has increased by almost 7% on the BSE since June 26. The stock was close to the level of Rs. 683.5 on Friday of last week.
Today, Vaishali Parekh, Vice President, Technical Research, Prabhudas Lilladher, stated that the stock had recovered well after finding support near the 600 zones and forming a double bottom pattern on the daily chart. Currently, after a brief dip, the stock has found support near the significant 50EMA level of 685 zones and has indicated a pullback with improving bias to form a rising channel pattern.
SBI, LIC, PNB, and Bank of Baroda Reportedly Exploring Options
She went on to say that the RSI has also flattened out following the decline and indicated a trend reversal. It is strong enough to signal a buy at this point and has a significant amount of upside potential to continue the momentum even further.
In light of this, Parekh said that they advise purchasing and accumulating the stock with a stop loss of 675 and an upside target of 795.
Major government-owned financial services providers like State Bank of India (SBI), LIC, Punjab National Bank, and Bank of Baroda are reportedly looking to sell their stake in the UTI AMC, according to recent media reports. These organizations collectively hold a 45.16% stake in the AMC, according to stocks today news.
UTI AMC’s net profit for the entire fiscal year FY23 decreased to Rs. 439.68 crore from Rs. 534.59 crore in FY22. Assets under management increased by 15% from March 31, 2022, when they were worth Rs. 13.49 lakh crore, to Rs. 15.56 lakh crore as of March 31, 2023, as per today’s economic news.
The mutual fund house also distributed a final dividend totalling 220% of its earnings in FY23, or Rs. 22 per share. The dividend payment for the previous fiscal year was 210% of 21 rupees per share. The price of UTI AMC’s stock on the BSE has decreased by almost 16% so far in 2023. The stock has increased by nearly 13% for a year, though.
