Is Bandhan Bank technically bullish or bearish?

Technical Trend Shift and Moving Averages

As of 3 December 2025, Bandhan Bank's technical trend has shifted from mildly bearish to outright bearish. This change reflects growing selling pressure and weakening investor confidence. The daily moving averages, a key indicator of short-term momentum, remain bearish, suggesting that the stock price is trading below its average levels and may continue to face resistance in the near term.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD is bearish, signalling that the stock's momentum is declining. However, the monthly MACD remains mildly bullish, indicating some longer-term underlying strength. This divergence suggests that while short-term sentiment is negative, there may be potential for recovery if broader market conditions improve.

Relative Strength Index and Bollinger Bands

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, implying that the stock is neither overbought nor oversold at present. Meanwhile, Bollinger Bands, which measure volatility and price levels relative to recent averages, are bearish on both weekly and monthly timeframes. This indicates that Bandhan Bank's price is trending towards the lower band, reflecting increased selling pressure and potential continuation of the downtrend.

Additional Technical Measures: KST, Dow Theory, and OBV

The Know Sure Thing (KST) indicator, which helps identify major price cycles, is bearish on the weekly chart but mildly bullish on the monthly chart. This again highlights a short-term negative bias with some longer-term optimism. Dow Theory analysis shows mildly bearish signals on both weekly and monthly scales, reinforcing the cautious outlook. On-Balance Volume (OBV), which tracks buying and selling volume, is mildly bearish across weekly and monthly periods, suggesting that volume trends support the downward price movement.

Price Performance and Volatility

Bandhan Bank's current market price stands at ₹146.80, down from the previous close of ₹149.75. The stock's 52-week high is ₹192.45, while the 52-week low is ₹128.15, indicating a wide trading range over the past year. Today's intraday high and low were ₹150.65 and ₹145.85 respectively, showing some volatility but a general downward bias.

Comparative Returns Against Sensex

Bandhan Bank's returns have lagged significantly behind the Sensex across multiple time horizons. Over the past week, the stock declined by 2.9%, compared to a modest 0.6% gain in the Sensex. The one-month return shows a sharper contrast, with Bandhan Bank falling 6.8% while the Sensex rose 1.3%. Year-to-date, the bank's stock is down 7.7%, whereas the Sensex has gained 8.9%. Over the last year, the divergence widens further, with Bandhan Bank losing 16.2% against the Sensex's 5.3% gain.

Longer-term performance is even more stark. Over three years, Bandhan Bank has declined nearly 39%, while the Sensex has surged 35%. The five-year comparison is more dramatic, with the bank down 61% versus the Sensex's 91% rise. These figures underscore the stock's persistent underperformance relative to the broader market and highlight the challenges faced by the company and its sector.

Sector Context and Market Sentiment

Operating within the private sector banking industry, Bandhan Bank faces intense competition and regulatory pressures that have impacted investor sentiment. The bearish technical signals align with broader concerns about credit growth, asset quality, and margin pressures in the banking sector. While some monthly indicators hint at mild bullishness, the prevailing short-term technical landscape remains unfavourable.

Investor Takeaway

Given the current technical indicators and price performance, Bandhan Bank appears to be in a bearish phase. The convergence of bearish signals across moving averages, MACD, Bollinger Bands, and volume-based indicators suggests that the stock may continue to face downward pressure in the near term. Investors should exercise caution and consider the broader market context and sector-specific risks before initiating or adding to positions.

However, the mildly bullish monthly signals in some momentum indicators imply that a longer-term recovery is not out of the question, especially if the bank can address operational challenges and improve fundamentals. For now, the technical outlook advises a conservative approach, favouring risk management and close monitoring of price action and volume trends.

Conclusion

In summary, Bandhan Bank's technical profile is predominantly bearish, with multiple indicators confirming a negative trend. The stock's underperformance relative to the Sensex and the private banking sector further reinforces this view. While some monthly indicators offer a glimmer of hope, the prevailing sentiment and technical evidence suggest that investors should remain cautious and vigilant in their approach to this stock.

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