RBL Bank share price: Fall takes a pause today after strong business update
Premium- Pause in RBL Bank share price fall can be attributed to strong business update filed by the private lender on Sunday, say stock market experts
RBL Bank share price fall took a pause today after making an intraday high of ₹129.25 per share levels. The banking stock opened on the downside but soon pick up momentum and came above its 31st December 2021 close of ₹127.15 levels on NSE. According to stock market experts, this pause in RBL Bank share price fall can be attributed to strong business update filed by the bank on Sunday. On 2nd January 2022, the private lender reported that its deposits have risen 9.61 per cent to ₹73,637 crore on year-on-year (Y-o-Y) basis.
RBL Bank share: Buy or sell?
On whether one should take fresh position in the counter expecting lower bottom; Ravi Singhal, Vice Chairman at GCL Securities said, "On Y-o-Y basis RBL Bank has reported rise in its deposits but if we compare it with the September 2021 quarter, it is around 2.50 per cent lower. So, one should wait further as more details in regard to the company's fundamentals are expected to come. After RBI putting its person to scrutinize and monitor the bank's management, fresh audit is expected and post-audit, actual financials of the bank will become available in the public domain. So, this pause should not be taken as lower bottom of the stock and my advice to the fresh investors is to wait further as more details of the bank financials are expected to come." He said that the information filed by RBL Bank is provisional and final results are yet to come.
Advising RBL Bank shareholders to maintain strict stop loss; Mudit Goel, Senior Research Analyst at SMC Global Securities said, "This is not ideal for a fresh investor to take position at current levels. However, the stock has strong support at ₹110. So, those who have RBL Bank shares in their stock portfolio are advised to maintain strict stop loss at ₹110."
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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