Stronger asset quality, digital push, and steady income growth underpin a bullish long-term case, according to the analyst.
RBL Bank shares have rallied over 70% in the last six months, and its technical charts suggest that consolidation is now on the cards.
SEBI-registered analyst Deepak Pal noted that on its weekly chart, support stands at ₹240 (immediate), followed by ₹225 (major), with immediate resistance at ₹265–270 and next level at ₹285. Overall bias remains bullish, but consolidation is visible in the short-term, he added.
Other technical indicators, such as the Relative Strength Index (RSI) stand at 66, indicating strength, but it is nearing an overbought zone. The Moving Average Convergence Divergence (MACD) shows a sustained positive crossover, which means that the momentum is still intact.
Additionally, the stock’s 20, 50, and 100-day Moving Averages show bullish alignment, confirming trend reversal from earlier downtrend.
Pal said that if RBL Bank stock sustains above ₹255–₹260, it can test ₹270–₹285 in the near term. A break below ₹240 may bring temporary weakness.
Fundamental View
The bank has been working on improving asset quality with declining non-performing assets (NPAs). The focus on retail lending and digital banking strengthens revenue visibility. And its capital adequacy remains comfortable, though margins are moderate compared to large private banks.
Pal said that the bank was still in a turnaround phase with gradual investor confidence returning. Short-term movements may depend on quarterly earnings and credit growth trends, with strong income growth or lower asset quality, boosting sentiment.
He also cautioned traders to watch for any change in repo rate that can directly impact margins, as well as any developments on capital infusion or M&A activity, which may create volatility.
What Should Investors Do?
Pal advised traders to buy RBL Bank on dips near ₹240–₹245 with targets of ₹265–₹270 for the short term.
In the medium term, if the momentum sustains, the stock can test ₹285–₹300. And in the long term, Pal expects focused restructuring and digital expansion to likely re-rate valuations.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<