Bandhan Bank – Base Formation After Prolonged Downtrend?

appears to be showing early signs of structural improvement on the weekly timeframe after an extended corrective phase. While the long-term trend remains damaged compared to its historical highs, recent price action suggests accumulation near lower levels. Technical Structure Multi-year downtrend from ₹300+ zone gradually transitioning into a broad base. Strong rebound from ₹130–150 support zone. Price now attempting to reclaim ₹180–190 resistance band. Trading above short-term EMA, indicating improving momentum. Stochastic RSI near overbought zone, reflecting strong short-term thrust. Volume expansion seen during recent up-move — early sign of participation. Key Levels to Watch: Immediate resistance: ₹185–200 zone. Major supply zone: ₹220–230. Support: ₹155–160 region. Breakdown risk if price slips below ₹145 again. A decisive weekly close above ₹200 could confirm medium-term trend reversal. Until then, it remains a recovery within a larger corrective structure. Fundamental Perspective Strong franchise in microfinance and retail lending. Gradual improvement in asset quality after past stress cycles. Provision coverage improving; credit cost normalisation is key trigger. CASA ratio stabilising, helping funding cost. Valuations relatively compressed compared to peak-cycle multiples. Risks & Triggers Microfinance asset quality remains sensitive to rural income trends. Regulatory environment and lending norms impact margins. Sustained ROA improvement above 2% could re-rate the stock. Bandhan Bank is at a technical inflection point. Structural breakout confirmation is still pending, but early momentum suggests institutions may be accumulating at lower valuations.