Bandhan Bank Gains 2.85%: 4 Key Factors Driving the Weekly Momentum

2 February 2026: Sharp Opening Decline Amid Market Weakness

Bandhan Bank began the week on a weak note, closing at Rs.148.80, down 3.75% from the previous Friday’s close of Rs.154.60. This decline was sharper than the Sensex’s 1.03% drop to 35,814.09, reflecting broader market pressures. The stock’s volume was relatively low at 146,990 shares, indicating cautious investor sentiment. This initial weakness set the stage for a volatile week ahead.

3 February 2026: Strong Rebound Outpaces Benchmark

On 3 February, Bandhan Bank rebounded strongly, gaining 4.17% to close at Rs.155.00. This surge outpaced the Sensex’s 2.63% gain to 36,755.96, signalling renewed buying interest. The stock traded in a range of Rs.151.20 to Rs.155.55, with volume surging to 566,016 shares, suggesting institutional participation. This recovery marked a technical inflection point, supported by improving momentum indicators.

4 February 2026: Mixed Technical Momentum and Valuation Concerns

The 4 February session was pivotal as Bandhan Bank’s technical momentum shifted from mildly bearish to sideways, reflecting indecision among investors. The stock closed at Rs.157.35, up 1.52%, while the Sensex gained a modest 0.37%. Key technical indicators such as MACD and KST showed mild bullishness on weekly and monthly charts, but daily moving averages remained mildly bearish, indicating short-term caution.

Valuation metrics drew attention this day, with the bank’s price-to-earnings ratio rising to 24.79, pushing its valuation grade into the "expensive" category. The price-to-book ratio stood at 1.02, close to book value but contributing to the premium perception. Compared to peers, Bandhan Bank’s valuation appeared stretched given its modest return on equity of 4.10% and net NPA ratio of 5.70%. These factors contributed to a downgrade in the Mojo Grade to Sell earlier in the week, signalling caution despite recent price gains.

5 February 2026: Mojo Grade Upgrade Reflects Improving Outlook

MarketsMOJO upgraded Bandhan Bank’s Mojo Grade from Sell to Hold on 4 February, reflecting a nuanced improvement in technical and valuation metrics. The stock closed at Rs.157.35 on 5 February, up 1.52%, with intraday highs reaching Rs.158.25. Technical indicators such as MACD, KST, and Dow Theory signalled mild bullishness on weekly and monthly charts, while the Relative Strength Index remained neutral.

Valuation also improved slightly, with the PE ratio adjusting to 25.16 and the P/B ratio at 1.03, now considered fair relative to peers. Despite ongoing financial challenges, including a 33.0% decline in net profit after tax for Q3 FY25-26 and a net NPA ratio of 5.70%, the upgrade suggests cautious optimism. Promoter stake reduction by 0.55% to 39.74% adds a note of caution, highlighting mixed sentiment among insiders.

6 February 2026: Steady Gains on Heavy Volume

Bandhan Bank continued its upward trajectory on 6 February, closing at Rs.159.00, a 0.79% gain on heavy volume of 1,402,924 shares. The Sensex rose marginally by 0.10% to 36,730.20. This sustained buying interest supports the mildly bullish technical outlook established earlier in the week. The stock remains below its 52-week high of Rs.192.45 but comfortably above its 52-week low of Rs.128.15, indicating a recovery phase.

Key Takeaways

Positive Signals: Bandhan Bank outperformed the Sensex with a 2.85% weekly gain versus 1.51% for the benchmark, supported by improving technical momentum and a Mojo Grade upgrade to Hold. Mildly bullish MACD, KST, and Dow Theory indicators on weekly and monthly charts suggest building upward momentum. The stock’s valuation grade improved from expensive to fair, reflecting a more balanced price-to-earnings and price-to-book ratio relative to peers.

Cautionary Factors: Despite short-term gains, Bandhan Bank faces ongoing financial challenges, including a 33.0% decline in recent quarterly net profit and a relatively high net NPA ratio of 5.70%. Promoter stake reduction signals some insider caution. Daily moving averages remain mildly bearish, indicating potential short-term volatility. Longer-term returns remain weak, with three- and five-year losses of 30.91% and 54.58% respectively, contrasting with Sensex gains.

Conclusion

Bandhan Bank’s performance this week reflects a cautious but positive shift in market sentiment. The stock’s 2.85% weekly gain and Mojo Grade upgrade to Hold highlight improving technical momentum and a more balanced valuation profile. However, ongoing financial pressures, including subdued profitability and asset quality concerns, temper enthusiasm. The divergence between medium-term bullish indicators and short-term moving average caution suggests that investors should monitor price action closely for confirmation of sustained strength.

While Bandhan Bank has outperformed the Sensex in the short term, its longer-term underperformance and promoter stake reduction warrant careful consideration. The stock remains in a recovery phase, with potential for further gains if supported by improving fundamentals and volume confirmation. Market participants should weigh these factors prudently when assessing exposure to this private sector banking stock.

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