Bandhan Bank shares hit 52-week low, down 26% in 2024; price targets, resistance & more

Shares of Bandhan Bank Ltd fell to a fresh 52-week low in early deals amid high volatility in the benchmark indices. Bandhan Bank stock slipped 2.74% to a low of Rs 173.45 on BSE. With today’s slide, the banking stock has lost 26% in 2024.

The bank is trading in the oversold zone with its relative strength index (RSI) falling to 23.3.

The large cap stock has lost 12 per cent in one year and fallen 37 per cent in two years. Bandhan Bank shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

A total of 4.19 lakh shares of the lender changed hands, amounting to a turnover of Rs 7.46 crore on BSE.

The stock hit a 52-week high of Rs 272 on June 1, 2023.

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock has slipped significantly after making another lower top formation on the daily chart with weak bearish view maintained as of now. Some pullback is expected and it needs to move past above the Rs 193 zone decisively for the overall bias to improve. The RSI has also attained the oversold zone and some revival cannot be ruled out with near term support maintained near the low made at Rs 173 levels."

Akhil Jalan, managing director of KKJ Financial Services said, "Bandhan Bank is undergoing a transformation – both in terms of loans and geographical mix. The changes will de-risk the bank’s balance sheet from socio-economic shocks and provide greater visibility to its earnings in the medium term. We foresee revival in RoA to 1.9%/2%/2% in FY24E/25E/26E from 1.5% in FY23. We have a BUY rating and a target of Rs 275 valuing the bank at 1.75x FY26E ABVPS."

Abhijeet from Tips2trades said,"Bandhan Bank looks oversold on the Daily charts with strong resistance at Rs 190. A daily close above this resistance could lead to target of Rs 211 in the near term. Support will be at Rs 173."

The lender reported an over two-fold increase in net profit for the third quarter. Net profit zoomed 152% to Rs 733 crore in the December 2023 quarter led by an improvement in core income. The Kolkata-based bank had reported a net profit of Rs 291 crore in the year-ago period.