Home / Markets / Stock Markets /  RBL Bank shares: What is triggering the surge? Stock up 23% in 2 days

RBL Bank share price: After hitting upper circuit on Wednesday session, RBL Bank shares have opened higher in early morning deals on Thursday. RBL Bank share price today opened with an upside gap and went on to hit intraday high of 128.25 apiece levels, logging near 5.35 per cent intraday gain in early morning session. The stock had hit upper circuit on Wednesday that means the banking stock has surged from around 104 to 128.25 levels in 2 sessions, logging around 23 per cent rise in this period.

According to stock market experts, RBL Bank is rising on short-term sentiment after the newsbreak of US retirement fund College Retirement Equity Fund buying stake in the banking stock. They said that the stock is moving upside due to this short-term trigger and advised positional investors to wait for profit-booking as stock has immediate support placed at 108 whereas it has strong support at 97 apiece levels.

Speaking on the reason for sharp rise in RBL Bank share price, Saurabh Jain, Vice President — Research at SMC Global Securities said, "The banking stock has been rising after the newsbreak of US retirement fund College Retirement Equity Fund buying stake in the banking stock. End of August series could also be a reason as people squaring off their short position is on high. I would advice people to wait as the stock has already surged on this short-term trigger and profit-booking is highly awaited."

Saurabh Jain of SMC Global Securities also advised to watch out for Fed's monetary tightening policy stance which could have an adverse impact on the FPI flow in India. .

On RBL Bank share price outlook from technical perspective, Anuj Gupta, Vice President — Research at IIFL Securities said, "RBL Bank share price has immediate support placed at 108 whereas it has strong support at 97 per share levels. The private banking share has immediate hurdle placed at 150 followed by 170."

Advising positional investors to buy above 130 only, Sumeet Bagadia, Executive Director at Choice Broking said, "200 DMA of the RBL Bank shares are placed at 130 and hence, one should buy only above 130 levels. Those, who have this stock in their portfolio are advised to maintain trailing stop loss below 110 and wait for the fresh breakout above 130 apiece levels."


As per the bulk deal details available on the BSE website, US retirement fund College Retirement Equity Fund has bought 45,84,678 shares of RBL paying 108.86 apiece. The FPI bought these shares through bulk deal executed on 24th August 2022.

RBL Bank, formerly known as Ratnakar Bank, posted a net profit of 201 crore in Q1FY23 compared to a net loss of 459 crore in in Q1FY22. Q1 PAT jumped by 2 per cent sequentially from 198 crore in Q4FY22. Net interest income (NII) stood at 1,028 crore up by 6 per cent from 970 crore in Q1FY22, however, down by 9 per cent from 1,131 crore in Q4FY22.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

Asit Manohar
Chief Content Producer at Live Mint Digital Team
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