RBL Bank shares down 15% from one-year high; can the multibagger stock retest Rs 250 level?

Shares of RBL Bank Ltd slipped 1.61 per cent in Monday's trade to hit a day low of Rs 212.65 over their previous close of Rs 216.15. At today's low price, the stock traded 15.35 per cent lower from its 52-week high of Rs 251.20, a level seen on July 27, 2023. The multibagger counter has gained nearly 120 per cent in the past one year. The scrip was up 19 per cent on a year-to-date (YTD) basis and 16 per cent in past one month.

The stock was in focus a couple of weeks back after tech-to-tractor conglomerate Mahindra & Mahindra (M&M) picked up a 3.53 per cent stake in private lender for Rs 417 crore. The automaker said it also planned to raise its stake to 9.90 per cent in the future, subject to regulatory approval. It must be noted that any investor needs approval from the Reserve Bank of India (RBI) to hold more than 10 per cent in a lender.

On the technical front, analysts largely said that the stock currently looked 'bearish'. Support on the counter could be seen at Rs 211, followed by Rs 200 and 190 levels.

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has witnessed a short correction from Rs 251 zone with a near-term support around Rs 208. Overall, the stock looked a little bit cautious and would need to cross the Rs 224 zone for the bias to improve and expect a further rise in the coming days.

Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, "RBL Bank has seen strong traction in the current financial year and has surged nearly 80 per cent. At present, the counter underwent some correction/cool-off post the stellar run and needs to be considered healthy from a broader perspective. As far as levels are concerned, the next set of support is placed around the Rs 200-190 zone for the near term. On the higher end, Rs 240-250 is likely to act as a sturdy hurdle in the comparable period."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Currently, the stock has been rejected from its stiff resistance of Rs 250. The ideal buy zone would be in the range of Rs 195-200 and the upside is seen till Rs 245. For this, stop loss would be placed around Rs 180. As of now wait and watch."

AR Ramachandran from Tips2trades said, "RBL Bank is bearish on the daily charts with strong resistance at Rs 219. A daily close below support of Rs 211 could lead to a target of Rs 192 in the near term."

Meanwhile, Indian equity benchmarks were last seen trading higher today, led by gains in technology, pharma, automobile and financial stocks.

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