Bandhan Bank shares fall over 2.5% to hit a fresh 52-week low

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Shares of Bandhan Bank fell 2.61 per cent to a 52-week low of Rs 210.50 on the BSE on Monday. The stock has declined 6.84 per cent in last five sessions. On a year-to-date (YTD) basis, the stock was trading slightly lower by 41 per cent.

Around 2.50 lakh shares changed hands today, amounting to Rs 5.42 crore. (M-Cap) The market capitalization of Bandhan Bank stood at Rs 34,036.75 crore.

Analysts are of the opinion that the stock trades in ‘oversold’ territory and cite Rs 200 as an “important psychological support level”.

Pavitra Shetty of Tips2trades said, “Below average results for Q2 FY2023 despite signs of strong credit growth have weighed on investor sentiment, leaving Bandhan Bank sliding lower and lower.” The stock should be bought only on closes above Rs 235, which can lead to losses. Bounce till 256-275 in the near term.” On the downside, a close below Rs 212 could lead to a move towards Rs 188 levels as there is heavy selling on the charts, he said.

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Pravesh Gaur, Senior Technical Analyst, Swastika Investmart said that the counter has seen a breakdown in the long consolidation pattern formation. “The overall structure is convoluted as it is trading below all its SMAs (Simple Moving Averages), and momentum indicators are also drawn negative. On the downside, Rs 200 is a strong and important psychological support level from which we expect a bounce. Can expect – up to Rs 230 back, below Rs 150,” said Gaur.

Tirthankar Das of Ashika Stock Broking said that Bandhan share price has been on a sequential decline since January 2021 and the slow pace of retracement indicates inherent weakness in the stock.

“On the oscillator front, on the daily time frame, the 14-period RSI is seen dipping towards the oversold zone, thus indicating that holding above the 200 support could eventually result in a pullback. Buy-on Stock with strength pattern i.e. in a decisive trade above 265 one can initiate buy position with a target above Rs 300-320,” said Das.

Bandhan Bank reported a net profit of Rs 209 crore for the September quarter, as against a loss of Rs 3,009 crore in the year-ago period, due to higher asset quality stress, higher-interest income reversals and increase in write-offs. happened.

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Elara Securities said in a post-earnings note, “Higher slippages led to a 100 basis point (bps) sequential NIM (net interest margin) dip in higher interest income reversal, thus reducing NII – net interest income – (quarterly rate quarter down 13 per cent). Despite a weak first half of FY23, we believe an end to asset quality uncertainty is near. That said, recovery trends are much slower than anticipated. Volatile performance affected investor confidence. A re-rating depends on continued earnings distribution.”

Meanwhile, Indian equity benchmarks fell sharply in today’s deals amid weak cues from global markets.

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