BANDHANBNK - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.9

📉 Technical & Momentum Analysis

Current Price (₹163) is below both the 50-DMA (₹175) and 200-DMA (₹172), indicating a bearish trend.

RSI (31.7): Approaching oversold territory — potential for a short-term bounce, but no confirmation yet.

MACD (-2.56): Negative and declining — confirms weak momentum.

Volume: Significantly below average, suggesting low trader interest and weak conviction.

📊 Fundamental Overview

ROCE (7.82%) & ROE (11.9%): Subpar returns for a banking stock.

Debt to Equity (6.60): Extremely high leverage — raises risk, especially in volatile conditions.

EPS (₹12.8) vs Stock P/E (12.8): Fairly valued, in line with Industry PE (12.2).

PEG Ratio (0.07): Very low — suggests undervaluation relative to growth, but must be weighed against volatility.

Quarterly Profit Decline (-65%): Major red flag — signals instability in earnings.

⚖️ Swing Trade Considerations

Pros

RSI near oversold — possible technical rebound.

FII and DII holdings have increased slightly — mild institutional interest.

PEG ratio suggests potential value if earnings stabilize.

Cons

Weak technical setup and poor volume.

High debt and declining profitability.

Price far below 52-week high (₹215), with only 40.4% of that range retained — weak relative strength.

🎯 Optimal Entry Price

Ideal Entry Zone: ₹150–₹155 — closer to support and oversold levels. Wait for RSI to cross 35 and MACD to flatten for confirmation.

🚪 Exit Strategy

If Holding: Consider exiting near ₹175–₹180 — around 50-DMA and likely resistance zone.

Stop Loss: ₹145 — breach of this level would invalidate rebound potential.

This stock may offer a short-term technical bounce, but it’s not a strong swing candidate unless you're comfortable with elevated risk. Want help identifying stronger setups in the banking sector or filtering by momentum indicators?

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