Bandhan Bank share price gained 2 percent intraday on August 5 after foreign institutional investors (FIIs) picked up shares of the bank. Bandhan Bank's promoters sold 20.95 percent stake via a block deal.
The move was a part of the bank's effort to pare down promoter shareholding in the lender to meet the Reserve Bank of India's regulatory norms.
As per the RBI's new banking licensing norms, banks have to pare down promoter holding to 40 percent within three years from the date of commencement of business.
Morgan Stanley Asia Singapore, Camas Investments, Caladium Investment, Copthall Mauritius Investment, Societe Generale and Credit Suisse Singapore are among the FIIs that bought shares of Bandhan Bank, data on the BSE showed.
Vikas Jain, Senior Research Analyst at Reliance Securities has a buy recommendation on the stock with target of Rs 360 per share. The stock has reversed sharply from its 200-Days Moving Average and has witnessed a sharp correction on Monday due to a large block deal. On the downside, it has good support in the range of Rs 275-280 levels being the 100-day average and 50 percent retracement of (152-400) levels.
One should use the correction to buy at current levels and on declines at lower levels for a higher target of Rs 360 levels over the next few months, he added.
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors also has a buy call on the stock with target of Rs 385 per share. The emerging line of polarity on the daily time frame of the chart is suggesting bullish momentum in the scrip. Indicators and oscillators are also showing a conducive scenario in the coming sessions, the analyst said.
The stock price was trading at Rs 312.75, up Rs 5.85, or 1.91 percent at 11:41 hours. It has touched an intraday high of Rs 315.40 and an intraday low of Rs 308.70.
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