Bandhan Bank Ltd. Technical Momentum Shifts Amid Mixed Market Signals

Price Movement and Market Context

On 4 Feb 2026, Bandhan Bank’s stock closed at ₹155.00, up from the previous close of ₹148.80, marking a daily gain of 4.17%. The intraday range was relatively tight, with a low of ₹151.20 and a high of ₹155.55. This price action suggests a positive short-term momentum, supported by a rebound from the 52-week low of ₹128.15, although still below the 52-week high of ₹192.45.

Comparatively, Bandhan Bank has outperformed the Sensex in the short term, delivering a 1-week return of 4.06% against the Sensex’s 2.30%. Over one month, the stock surged 7.19%, while the Sensex declined by 2.36%. Year-to-date returns also favour Bandhan Bank at 6.35%, contrasting with the Sensex’s negative 1.74%. However, longer-term performance remains a concern, with a 3-year return of -31.94% versus the Sensex’s robust 37.63%, and a 5-year return of -54.78% against the Sensex’s 66.63%.

Technical Indicators: Mixed Signals Across Timeframes

The technical landscape for Bandhan Bank is characterised by a blend of mildly bullish and bearish signals across weekly and monthly charts, with daily indicators leaning slightly bearish.

MACD (Moving Average Convergence Divergence): Both weekly and monthly MACD readings are mildly bullish, indicating a potential for upward momentum. This suggests that the stock’s short- and medium-term momentum is improving, with the MACD line likely positioned above the signal line, signalling buying interest.

RSI (Relative Strength Index): The RSI on weekly and monthly charts shows no clear signal, hovering in a neutral zone. This implies the stock is neither overbought nor oversold, leaving room for directional movement without immediate risk of reversal due to extreme conditions.

Bollinger Bands: Weekly Bollinger Bands are bullish, reflecting price strength and potential continuation of upward momentum. Conversely, monthly Bollinger Bands are mildly bearish, indicating some caution over the longer term as price volatility may increase or the stock could face resistance near upper bands.

Moving Averages: Daily moving averages remain mildly bearish, suggesting that short-term price action is under pressure. This could be due to recent volatility or profit-taking after the recent rally. The stock may be trading below key moving averages such as the 50-day or 200-day, signalling a need for confirmation of a sustained uptrend.

KST (Know Sure Thing) Indicator: Both weekly and monthly KST indicators are mildly bullish, reinforcing the MACD’s positive momentum signals. This momentum oscillator’s readings support the possibility of continued price strength in the medium term.

Dow Theory: Weekly Dow Theory signals are mildly bullish, indicating that the stock’s primary trend may be shifting upwards. However, the monthly Dow Theory shows no clear trend, reflecting uncertainty in the longer-term directional bias.

On-Balance Volume (OBV): Both weekly and monthly OBV indicators show no trend, suggesting that volume is not confirming the price moves decisively. This lack of volume confirmation may temper enthusiasm for a strong breakout or sustained rally.

Technical Trend Evolution and Market Implications

Bandhan Bank’s technical trend has shifted from mildly bearish to sideways, signalling a phase of consolidation. This transition suggests that the stock is currently balancing between buyers and sellers, with neither side exerting dominant control. Such a sideways trend often precedes a significant directional move, making it critical for investors to monitor key technical levels and volume patterns.

The mildly bullish weekly MACD and KST indicators hint at underlying strength, but the absence of volume confirmation via OBV and the mildly bearish daily moving averages caution against premature optimism. The mixed Bollinger Bands readings further underscore the need for vigilance, as weekly bullishness contrasts with monthly mild bearishness.

Investors should also consider the broader sector context. Bandhan Bank operates within the Private Sector Bank industry, which has shown resilience but faces headwinds from macroeconomic factors and regulatory changes. The company’s Mojo Score of 41.0 and a downgrade from Hold to Sell on 31 Oct 2025 reflect these challenges, signalling a cautious stance from analysts.

Valuation and Market Capitalisation Considerations

Bandhan Bank’s market cap grade stands at 3, indicating a mid-tier capitalisation relative to peers. This positioning may limit liquidity and institutional interest compared to larger private sector banks. The current price of ₹155.00 is significantly below the 52-week high of ₹192.45, suggesting potential upside if technical momentum sustains and fundamentals improve.

However, the long-term negative returns relative to the Sensex highlight structural challenges. Over five years, the stock has declined by 54.78%, while the Sensex has surged 66.63%. This divergence emphasises the importance of a thorough fundamental and technical reassessment before committing to a position.

Investor Takeaways and Outlook

For investors, Bandhan Bank’s current technical profile suggests a cautious approach. The mildly bullish momentum indicators on weekly and monthly charts offer some optimism, but the lack of volume confirmation and daily bearish moving averages temper enthusiasm. The sideways trend indicates a consolidation phase, where the stock could either break out to the upside or resume a downward trajectory.

Given the downgrade to a Sell rating and a Mojo Grade of 41.0, investors should weigh the risks carefully. Short-term traders might capitalise on the recent price strength and momentum oscillators, but longer-term investors need to consider the company’s fundamental challenges and relative underperformance versus the broader market.

Monitoring key technical levels such as the 50-day and 200-day moving averages, alongside volume trends, will be crucial in the coming weeks. Additionally, keeping an eye on sector developments and macroeconomic factors impacting private sector banks will provide valuable context for decision-making.

In summary, Bandhan Bank Ltd. presents a complex technical picture with mixed signals. While some momentum indicators have improved, the overall trend remains sideways with caution warranted. Investors should remain vigilant and consider alternative opportunities within the sector that may offer stronger technical and fundamental profiles.

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