What does the merger signal for Bandhan Bank and Gruh Fin on tech chart?

Bandhan Bank on Monday agreed to acquire housing finance firm Gruh Finance through a share swap deal. Under the merger cooperation agreement, shareholders of Gruh Finance will get 568 shares of Bandhan Bank for every 1,000 shares held.

The opening deals on Tuesday indicated negative sentiment for Gruh Finance as the stock was trading over 10 per cent lower after a gap down opening. Even, Bandhan Bank saw a gap down start with the shares falling up to 6 per cent. However, the stock recovered later and was trading above the opening levels of Rs 482.

Bandhan Bank: The stock