Bandhan Bank Ltd. Sees Exceptional Volume Surge Amidst Mixed Technical Signals

Robust Trading Volumes Highlight Investor Interest

On 23 Jan 2026, Bandhan Bank Ltd. (BSE: BANDHANBNK) witnessed a total traded volume of 1,49,43,239 shares, translating to a traded value of approximately ₹219.19 crores. This volume is significantly higher than the stock’s five-day average delivery volume, which stood at around 37.2 lakh shares prior to this surge. The delivery volume on 22 Jan 2026 was 59.02 lakh shares, marking a 58.71% increase over the five-day average, indicating rising investor conviction and accumulation.

The stock opened sharply higher at ₹150.20, representing a gap-up of 5.43% from the previous close of ₹142.46. It touched an intraday high of ₹150.70, up 5.78%, before settling at ₹146.77 at the last update time of 09:44:46 IST. This performance outpaced the Private Sector Bank sector, which declined by 0.09%, and the Sensex, which was nearly flat with a 0.04% gain.

Technical and Fundamental Signals Paint a Complex Picture

Despite the strong volume and price action, Bandhan Bank’s Mojo Score remains subdued at 36.0, with a recent downgrade in its Mojo Grade from Hold to Sell on 31 Oct 2025. This downgrade reflects concerns over the bank’s medium-term outlook, possibly linked to asset quality pressures or valuation concerns. The Market Cap Grade is a modest 3, categorising the company as a small-cap with a market capitalisation of ₹22,981 crores.

Technically, the stock is trading above its 5-day and 20-day moving averages, signalling short-term strength. However, it remains below its 50-day, 100-day, and 200-day moving averages, suggesting that the longer-term trend is still under pressure. The weighted average price indicates that more volume was traded closer to the day’s low price, which could imply cautious profit-taking or distribution by some investors despite the overall volume surge.

Sectoral Context and Relative Performance

Bandhan Bank’s outperformance relative to its sector is notable, especially given the broader weakness in the Private Sector Bank segment. The sector’s 1-day return of -0.09% contrasts with Bandhan Bank’s 2.79% gain, underscoring the stock’s relative strength. This divergence may be driven by company-specific factors such as recent earnings updates, management commentary, or market speculation about strategic initiatives.

Accumulation and Distribution Dynamics

The surge in delivery volume alongside the price appreciation suggests a phase of accumulation by institutional and retail investors. However, the weighted average price being closer to the day’s low hints at some distribution activity, possibly by short-term traders or profit-booking participants. This mixed behaviour is typical in stocks undergoing technical consolidation after a recent downgrade, where market participants weigh the risk-reward balance carefully.

Liquidity remains adequate for sizeable trades, with the stock’s traded value comfortably exceeding 2% of its five-day average traded value, allowing for trade sizes of approximately ₹2.82 crores without significant market impact. This liquidity profile supports active participation from both retail and institutional investors.

Outlook and Analyst Perspectives

Given the current Mojo Grade of Sell and a modest Mojo Score of 36.0, analysts remain cautious on Bandhan Bank’s near-term prospects. The downgrade from Hold reflects concerns over earnings growth sustainability and asset quality metrics, which may weigh on investor sentiment. However, the recent price strength and volume surge indicate pockets of optimism, possibly driven by expectations of operational improvements or sectoral tailwinds.

Investors should monitor the stock’s ability to sustain gains above the 20-day moving average and watch for any reversal signals from the 50-day and longer-term moving averages. A sustained break above these levels could signal a technical turnaround, while failure to hold current support levels may confirm the bearish outlook.

Investor Takeaway

Bandhan Bank Ltd.’s exceptional trading volume and price gains on 23 Jan 2026 highlight renewed investor interest despite a cautious fundamental backdrop. The stock’s outperformance relative to its sector and the broader market suggests selective buying, possibly from value-oriented investors or those anticipating a turnaround. However, the downgrade in Mojo Grade and the stock’s position below key long-term moving averages counsel prudence.

Investors should closely track volume patterns and price action in the coming sessions to gauge whether the current accumulation phase can translate into sustained upward momentum. Monitoring delivery volumes and weighted average price trends will be critical to discerning genuine buying interest from short-term speculative activity.

Overall, Bandhan Bank remains a stock to watch for active traders and cautious investors alike, balancing the potential for short-term gains against the risks highlighted by recent fundamental assessments.

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