Bandhan Bank Ltd. Technical Momentum Shifts Signal Mildly Bullish Outlook

Technical Trend Overview and Momentum Analysis

Bandhan Bank’s current price stands at ₹157.35, up 1.52% from the previous close of ₹155.00, with intraday highs reaching ₹158.25 and lows at ₹152.10. The stock remains below its 52-week high of ₹192.45 but comfortably above the 52-week low of ₹128.15, indicating a recovery phase within a broader downtrend over the longer term.

The technical trend has shifted from a neutral sideways pattern to a mildly bullish one, reflecting a subtle but meaningful change in price momentum. This is corroborated by the Moving Average Convergence Divergence (MACD) indicator, which shows mildly bullish signals on both weekly and monthly charts. The MACD line has crossed above the signal line on the weekly timeframe, suggesting increasing upward momentum, while the monthly MACD confirms this trend, albeit with less intensity.

Conversely, the Relative Strength Index (RSI) remains neutral on both weekly and monthly charts, indicating that the stock is neither overbought nor oversold. This lack of extreme RSI readings suggests that the current price movement is sustainable without immediate risk of a sharp reversal due to overextension.

Moving Averages and Bollinger Bands: Mixed Signals

Daily moving averages present a mildly bearish picture, with short-term averages still lagging behind longer-term ones. This suggests that while momentum is improving, the stock has yet to decisively break out of its recent consolidation phase. Investors should watch for a crossover of the 50-day moving average above the 200-day moving average, which would signal a more robust bullish trend.

Bollinger Bands add nuance to the technical outlook. On the weekly chart, the bands are expanding with the price moving towards the upper band, a bullish sign indicating increased volatility and potential for further gains. However, the monthly Bollinger Bands remain mildly bearish, reflecting longer-term caution as the stock has not yet regained its previous highs.

Additional Technical Indicators Confirm Mild Bullishness

The Know Sure Thing (KST) oscillator, a momentum indicator that aggregates multiple rate-of-change calculations, is mildly bullish on both weekly and monthly timeframes. This supports the view that momentum is building gradually rather than in a sharp spike, favouring a steady upward trajectory.

Similarly, the Dow Theory analysis aligns with this mildly bullish stance, indicating that the stock is in the early stages of an upward trend confirmation. On-Balance Volume (OBV) readings also show mild bullishness, suggesting that buying volume is beginning to outpace selling volume, a positive sign for price sustainability.

Performance Comparison with Sensex and Industry Context

Bandhan Bank’s recent returns have outpaced the broader Sensex benchmark over short to medium terms. Over the past week, the stock gained 2.64% compared to Sensex’s 1.79%. The one-month return is particularly impressive at 8.82%, while the Sensex declined by 2.27% in the same period. Year-to-date, Bandhan Bank has risen 7.96%, contrasting with a 1.65% fall in the Sensex.

However, longer-term returns reveal challenges. Over one year, the stock’s 4% gain lags behind the Sensex’s 6.66%. More notably, the three-year and five-year returns are deeply negative at -30.91% and -54.58% respectively, while the Sensex posted strong gains of 37.76% and 65.60% over the same periods. This divergence highlights the stock’s struggle to regain investor confidence amid sectoral and macroeconomic headwinds.

Mojo Score Upgrade and Market Capitalisation Insights

Reflecting the improved technical outlook, Bandhan Bank’s Mojo Grade was upgraded from Sell to Hold on 4 February 2026, with a current Mojo Score of 54.0. This score places the stock in a neutral zone, suggesting that while the outlook has improved, investors should remain cautious and monitor further developments. The Market Cap Grade stands at 3, indicating a mid-tier capitalisation relative to peers in the private sector banking industry.

Investors should note that the stock’s current mild bullish momentum is supported by a confluence of technical indicators but tempered by mixed signals from moving averages and longer-term Bollinger Bands. This nuanced picture calls for a balanced approach, weighing short-term gains against longer-term risks.

Investor Takeaway and Outlook

Bandhan Bank’s technical indicators collectively suggest a cautiously optimistic outlook. The mildly bullish MACD, KST, Dow Theory, and OBV readings on weekly and monthly charts indicate that momentum is building steadily. The neutral RSI readings imply that the stock is not overbought, allowing room for further appreciation without immediate risk of correction.

However, the mildly bearish daily moving averages and monthly Bollinger Bands counsel prudence. Investors should watch for confirmation of trend strength through sustained price action above key moving averages and a breakout above the upper Bollinger Band on monthly charts.

Given the stock’s mixed long-term performance relative to the Sensex and its current Mojo Grade of Hold, a balanced approach is advisable. Investors with a medium-term horizon may consider accumulating on dips, while those with lower risk tolerance might await stronger confirmation of trend reversal.

Overall, Bandhan Bank Ltd. is demonstrating early signs of technical recovery, but the path ahead requires careful monitoring of momentum indicators and price action to validate a sustained bullish trend.

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