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Bandhan Bank Faces Worst Single-Day Drop Since 2020
16 Mar
Summary
- Bandhan Bank shares fell 12% on Monday, marking a significant decline.
- The stock's Relative Strength Index indicates it's nearing oversold territory.
- Trading volumes surged on Monday, significantly exceeding the daily average.
Shares of Bandhan Bank experienced a severe downturn on Monday, March 16, marking the lender's worst single-day percentage fall since March 2020. The stock declined by 12% on the day, extending losses over three consecutive trading sessions. This significant drop has pushed the share price below key technical indicators, including the 50-day and 200-day moving averages.
Technical indicators suggest the stock is approaching oversold territory, with the Relative Strength Index (RSI) at 38; readings below 30 typically signal oversold conditions. Notably, trading volumes on Monday surged dramatically, with over 1.45 crore shares changing hands by mid-morning, far exceeding the 20-day average of 58 lakh shares. This spike in volume represents the highest observed for the stock in March thus far.
The sell-off occurred shortly after the Election Commission of India announced the dates for the West Bengal state assembly elections, with polling scheduled for April 23 and April 29. Despite the recent performance, a significant number of analysts, 16 out of 28, maintain a 'buy' rating on Bandhan Bank.
