Bandhan Bank Forms Death Cross Signalling Potential Bearish Trend

The Death Cross is widely regarded by market analysts as a warning sign of sustained downward momentum. For Bandhan Bank, this event was triggered on 18 Nov 2025, following a period of underperformance relative to the broader market. The stock’s one-year performance shows a decline of 8.15%, contrasting with the Sensex’s gain of 9.48% over the same period. This divergence highlights the challenges faced by Bandhan Bank within the private sector banking space.

Examining the stock’s recent price movements, Bandhan Bank recorded a day change of -0.90%, which is more pronounced than the Sensex’s decline of 0.33% on the same day. Over the past month, the stock has fallen by 4.75%, while the Sensex has advanced by 0.86%. These figures underscore the stock’s relative weakness in the short term.

From a longer-term perspective, Bandhan Bank’s three-year performance reveals a decline of 29.05%, while the Sensex has appreciated by 37.31%. Over five years, the stock’s performance shows a significant drop of 57.59%, compared to the Sensex’s robust gain of 91.65%. The ten-year data indicates no change for Bandhan Bank, whereas the Sensex has surged by 232.28%. These figures collectively illustrate a persistent trend of underperformance and highlight the stock’s struggle to keep pace with the broader market indices.

Technical indicators further reinforce the bearish outlook. The daily moving averages for Bandhan Bank are currently signalling a bearish trend, consistent with the Death Cross event. Weekly and monthly Bollinger Bands also reflect bearish conditions, suggesting increased volatility and downward pressure on the stock price.

Additional technical tools provide a mixed but cautious view. The Moving Average Convergence Divergence (MACD) indicator is bearish on a weekly basis but mildly bullish monthly, indicating some short-term momentum challenges but potential for longer-term stabilisation. The Relative Strength Index (RSI) does not currently signal any strong momentum either weekly or monthly, implying a lack of clear directional strength.

The KST (Know Sure Thing) indicator aligns with the MACD, showing bearish tendencies weekly but mild bullishness monthly. Dow Theory analysis points to mildly bearish trends on both weekly and monthly timeframes, while On-Balance Volume (OBV) readings suggest mild bearishness, indicating that volume trends are not supporting upward price movements.

Bandhan Bank’s market capitalisation stands at approximately ₹24,809 crore, categorising it as a small-cap stock within the private sector banking industry. Its Mojo Score is 36.0, with a recent adjustment in evaluation reflected by a change in Mojo Grade from Hold to Sell as of 31 Oct 2025. This revision aligns with the technical signals and performance data indicating a challenging environment for the stock.

Investors should note that the Death Cross is not an infallible predictor but rather a cautionary signal that often precedes extended periods of price weakness. The combination of Bandhan Bank’s underwhelming relative performance, bearish technical indicators, and recent adjustment in evaluation suggests that the stock may face continued headwinds in the near to medium term.

Given the current market context, including the Sensex’s positive trajectory over multiple time horizons, Bandhan Bank’s relative underperformance is notable. The stock’s inability to keep pace with sectoral and broader market gains may reflect underlying challenges in its operational or financial metrics, which investors should monitor closely.

In summary, the formation of the Death Cross for Bandhan Bank signals a potential shift towards a bearish trend, supported by a range of technical indicators and performance data. While some monthly indicators show mild bullishness, the prevailing signals point to trend deterioration and long-term weakness. Market participants are advised to consider these factors carefully when evaluating Bandhan Bank’s stock within their portfolios.

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