Bandhan Bank Ltd. Technical Momentum Shifts Amid Mixed Market Signals

Recent Price Action and Market Context

On 27 Jan 2026, Bandhan Bank closed at ₹149.35, marking a significant 4.7% increase from the previous close of ₹142.65. The stock traded within a range of ₹145.10 to ₹152.15 during the session, demonstrating intraday volatility but overall positive momentum. However, this rally comes against a backdrop of a 52-week high of ₹192.45 and a low of ₹128.15, indicating that the stock remains well below its peak levels over the past year.

Comparatively, Bandhan Bank has outperformed the Sensex in the short term, with a one-week return of 3.18% versus the Sensex’s decline of 2.43%. Year-to-date, the stock has gained 2.47%, while the Sensex has fallen 4.32%. Despite these short-term gains, the longer-term picture is less favourable, with a one-year return of -1.09% against the Sensex’s 6.56% gain, and a three-year return of -39.83% compared to the Sensex’s robust 33.80% growth. Over five years, the stock has declined by 52.47%, while the Sensex surged 66.82%, underscoring persistent challenges for Bandhan Bank relative to the broader market.

Technical Indicator Analysis

The technical landscape for Bandhan Bank is nuanced, with several key indicators signalling caution. The Moving Average Convergence Divergence (MACD) presents a dichotomy: the weekly MACD remains bearish, suggesting downward momentum in the near term, while the monthly MACD has turned mildly bullish, hinting at potential longer-term recovery. This divergence indicates that while short-term traders may face headwinds, longer-term investors might find some cause for optimism.

The Relative Strength Index (RSI) offers no clear signal on either the weekly or monthly charts, hovering in neutral territory. This lack of momentum confirmation suggests the stock is neither overbought nor oversold, leaving room for directional movement but no definitive trend bias.

Bollinger Bands on both weekly and monthly timeframes are mildly bearish, reflecting a tendency for the stock price to trade near the lower band, which often signals increased volatility and potential downside risk. Daily moving averages also align with a mildly bearish outlook, reinforcing the cautious stance among technical analysts.

Volume and Trend Confirmation

On-Balance Volume (OBV) indicators for both weekly and monthly periods are mildly bearish, indicating that volume trends do not support a strong upward price movement. This volume weakness suggests that recent price gains may lack robust institutional backing, which is critical for sustained rallies.

The Know Sure Thing (KST) oscillator echoes the MACD’s mixed signals, with a bearish weekly reading but a mildly bullish monthly stance. Meanwhile, Dow Theory analysis shows no clear trend on either weekly or monthly charts, reflecting market indecision and a lack of confirmed directional movement.

Mojo Score and Grade Implications

Bandhan Bank’s current Mojo Score stands at 38.0, reflecting a Sell rating, a downgrade from the previous Hold grade issued on 31 Oct 2025. This adjustment signals a deterioration in the stock’s technical and fundamental outlook, influenced by the mixed momentum signals and underperformance relative to the broader market indices. The Market Cap Grade remains low at 3, indicating limited market capitalisation strength compared to peers in the private sector banking space.

Investors should note that the downgrade is consistent with the mildly bearish technical trend and the absence of strong bullish confirmation from key momentum indicators. The stock’s recent price gains, while encouraging, have not yet translated into a sustained trend reversal.

Sector and Industry Context

Operating within the Private Sector Bank industry, Bandhan Bank faces stiff competition from larger peers and is navigating a challenging macroeconomic environment. The sector has seen mixed performance, with some banks benefiting from credit growth and digital transformation, while others grapple with asset quality concerns and margin pressures. Bandhan Bank’s technical signals suggest it is currently in a consolidation phase, with investors awaiting clearer directional cues.

Investment Outlook and Risk Considerations

Given the current technical setup, Bandhan Bank appears to be at a crossroads. The mildly bearish trend and mixed indicator signals imply that while short-term rallies are possible, the stock may encounter resistance near its recent highs. The lack of strong volume support and neutral RSI readings further caution against aggressive positioning.

Longer-term investors should weigh the stock’s underperformance over the past three to five years against the potential for recovery indicated by monthly MACD and KST readings. However, the downgrade to a Sell rating by MarketsMOJO underscores the need for prudence and suggests that alternative opportunities within the sector may offer better risk-reward profiles.

Summary

Bandhan Bank Ltd.’s recent technical parameter changes reflect a shift from bearish to mildly bearish momentum, underscored by mixed signals from MACD, RSI, Bollinger Bands, and moving averages. While short-term price action has been positive, the absence of strong volume support and neutral momentum indicators temper enthusiasm. The downgrade to a Sell rating and a Mojo Score of 38.0 highlight the cautious stance adopted by analysts, especially given the stock’s underperformance relative to the Sensex over longer periods.

Investors should monitor key technical levels and volume trends closely, as a sustained break above recent highs with confirming volume could signal a more robust recovery. Until then, the stock remains vulnerable to volatility and sector headwinds, making it prudent to consider alternative investment options within the private sector banking space.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →