Market expert Pradeep Haldar has issued a nuanced recommendation for investors, advising caution on Federal Bank despite its robust technical structure. Speaking on Business Today’s Daily Calls, Haldar suggested that while existing Federal Bank shareholders might maintain their positions with a trailing stop loss near Rs 307, new investors should avoid chasing the rally at current levels.
Federal Bank's Strong Chart, Limited New Upside
Haldar noted that Federal Bank continues to trade above its 20, 50, and 100 exponential moving averages, indicating a healthy broader structure. However, he emphasized that the stock has already seen a meaningful run-up, implying that much of its near-term momentum could be priced in. For those already holding Federal Bank shares, his advice was to maintain current quantities rather than average up, prioritizing capital protection.
Bandhan Bank: The Preferred Private Banking Bet
In contrast, Haldar highlighted Bandhan Bank as a more attractive opportunity within the private banking sector for fresh investments. He pointed out that Bandhan Bank has been consistently holding above the Rs 210-212 zone and the significant Rs 200 mark, a level it struggled to reclaim after slipping below it in mid-2024. This sustained performance above key resistance levels makes its current chart look "very good" from a technical perspective.
Haldar sees Bandhan Bank potentially moving towards Rs 245-250 from its current levels, offering compelling upside for investors seeking new exposure. The broader market context, with private banks acting as key drivers of the day's rally, further underscores the importance of valuation comfort. According to Haldar, Bandhan Bank currently provides this comfort alongside significant catch-up potential, a combination Federal Bank may no longer offer to aggressive new buyers.
"Bandhan Bank's chart is looking very good," Haldar stated, emphasizing its recent strength above critical price points.
The expert's overall takeaway is clear: while Federal Bank remains a hold for existing investors, new capital may find a smarter trade in Bandhan Bank, where the rally is less mature and the potential for upside appears more open-ended.