Key Events This Week
Jan 21: Q3 FY26 results reveal profitability surge but raise asset quality concerns
Jan 21: Technical momentum shifts to bearish, signalling increased selling pressure
Jan 23: Week closes at Rs.24.03, down 6.35% for the week
Monday, 19 January 2026: Market Weakness Sets the Tone
Dhanlaxmi Bank started the week at Rs.25.50, down 0.62% from the previous Friday’s close. The broader market was also weak, with the Sensex falling 0.49% to 36,650.97. Trading volume was moderate at 49,717 shares. The stock’s decline mirrored the cautious sentiment prevailing in the banking sector amid macroeconomic uncertainties.
Tuesday, 20 January 2026: Sharp Decline Amid Market Sell-Off
The stock fell sharply by 2.24% to Rs.24.93 on heavy volume of 1,06,515 shares, underperforming the Sensex which dropped 1.82%. This decline reflected intensified selling pressure as investors reacted to broader market weakness and awaited quarterly results. The stock’s fall was more pronounced than the benchmark, signalling growing investor caution.
Wednesday, 21 January 2026: Earnings Reveal Mixed Signals; Technical Momentum Turns Bearish
Dhanlaxmi Bank reported its Q3 FY26 results, showing a surge in profitability but raising concerns over asset quality. The stock closed at Rs.24.47, down 1.85%, despite the positive earnings headline. The market appeared to weigh the underlying risks more heavily than the profit growth.
On the same day, technical analysis indicated a shift from mildly bearish to outright bearish momentum. Key indicators such as moving averages and Bollinger Bands signalled increased downward pressure. The MACD was mixed, with weekly charts mildly bullish but monthly charts bearish, while RSI remained neutral. Volume indicators showed no decisive trend, adding to the uncertainty.
This technical deterioration aligned with the stock’s underperformance relative to the Sensex, which fell 0.47% that day. The Mojo Score downgraded to 43.0, categorised as a Sell, reflecting the cautious stance warranted by the mixed fundamental and technical outlook.
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Thursday, 22 January 2026: Slight Recovery on Lower Volume
The stock rebounded modestly by 1.10% to Rs.24.74 on lighter volume of 34,031 shares, outperforming the Sensex which gained 0.76%. This uptick suggested some short-term relief after the prior days’ declines, possibly driven by bargain hunting or technical support near recent lows. However, the recovery was limited and did not reverse the broader downtrend.
Friday, 23 January 2026: Week Ends with Sharp Decline Amid Renewed Selling
Dhanlaxmi Bank closed the week at Rs.24.03, down 2.87% on heavy volume of 1,45,622 shares. The Sensex also declined 1.33%, but the stock’s fall was more severe, reflecting sustained selling pressure. The technical momentum remained bearish, with moving averages and Bollinger Bands indicating continued downside risk. The weekly OBV showed no clear trend, while monthly OBV was mildly bullish, suggesting cautious accumulation by some investors despite the weakness.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-19 | Rs.25.50 | -0.62% | 36,650.97 | -0.49% |
| 2026-01-20 | Rs.24.93 | -2.24% | 35,984.65 | -1.82% |
| 2026-01-21 | Rs.24.47 | -1.85% | 35,815.26 | -0.47% |
| 2026-01-22 | Rs.24.74 | +1.10% | 36,088.66 | +0.76% |
| 2026-01-23 | Rs.24.03 | -2.87% | 35,609.90 | -1.33% |
Key Takeaways
Profitability vs Asset Quality: The Q3 FY26 results showed a profitability surge, but underlying asset quality concerns tempered investor enthusiasm. This duality contributed to the stock’s volatile price action and bearish technical shift.
Technical Momentum Shift: The transition from mildly bearish to bearish technical indicators, including moving averages and Bollinger Bands, signals increased selling pressure and a challenging near-term outlook.
Volume and Momentum Indicators: Mixed volume signals and neutral RSI suggest no immediate exhaustion of selling, leaving room for further downside or consolidation.
Relative Performance: The stock underperformed the Sensex by nearly 3% over the week, reflecting sector-specific headwinds and company-specific risks.
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Conclusion
Dhanlaxmi Bank Ltd’s share price faced a difficult week, declining 6.35% amid mixed earnings results and a clear shift to bearish technical momentum. While profitability improved in Q3 FY26, concerns over asset quality and deteriorating technical indicators weighed heavily on investor sentiment. The stock’s underperformance relative to the Sensex highlights sector-specific challenges and company-specific risks. Technical signals suggest continued caution, with no clear indication of a near-term reversal. Investors should monitor upcoming developments closely, balancing the bank’s historical performance against current headwinds and market volatility.
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