IDBI - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.8

📊 Chart Patterns: IDBI Bank is trading slightly above its 50 DMA (97.6 ₹) and 200 DMA (92.3 ₹), showing short-term strength within a broader uptrend. Current price (98.5 ₹) is near support at 96–97 ₹, with resistance around 105–107 ₹. Broader range remains 96–107 ₹.

📈 Moving Averages: Price above both averages indicates bullish undertone, though momentum is moderate.

📉 RSI: At 48.0, RSI is neutral, suggesting balanced momentum without clear overbought or oversold signals.

📉 MACD: Slightly negative at -0.27, showing weak momentum and consolidation bias.

📊 Bollinger Bands: Price is near the mid-band, suggesting sideways consolidation within the current range.

📉 Volume Trends: Current volume (44,12,155) is below average weekly volume (55,78,218), showing reduced participation and lack of strong buying conviction.

📌 Short-term Momentum Signals: Neutral to weak — RSI stable but MACD negative. A bounce is possible if price holds above 96 ₹. Breakout above 105–107 ₹ could trigger recovery toward 110 ₹.

🎯 Optimal Entry Zone: 96–98 ₹ (near support).

🎯 Optimal Exit Zone: 105–110 ₹ (near resistance).

📉 Trend Status: The stock is consolidating with a mild bullish bias, awaiting breakout confirmation.

Positive

• Quarterly PAT growth (3,627 Cr. vs 2,007 Cr.), up 97.5%, highlights strong earnings momentum.
• EPS of 8.92 ₹ supports valuation strength.
• PEG ratio of 0.24 indicates attractive growth relative to valuation.
• Dividend yield of 2.14% provides steady shareholder returns.

Limitation

• Stock trading close to resistance levels limits immediate upside potential.
• ROCE (6.76%) is modest compared to peers.
• Debt-to-equity ratio of 4.87 indicates high leverage risk.
• Volume participation is weak compared to average, reducing breakout conviction.

Company Negative News

• FII holding decreased slightly (-0.07%), showing marginal reduction in foreign investor confidence.
• DII holding decreased by -0.04%, reflecting reduced domestic institutional support.

Company Positive News

• Quarterly PAT growth highlights strong operational performance.
• EPS improvement and attractive PEG ratio indicate valuation strength.

Industry

• Industry PE at 14.7 is higher than IDBI’s PE (11.0), suggesting undervaluation relative to peers.
• Banking sector outlook remains stable with strong credit growth and digital adoption trends.

Conclusion

⚖️ IDBI Bank shows strong fundamentals with robust profit growth, attractive PEG ratio, and steady dividend yield. However, technically the stock is consolidating near support with weak momentum signals from RSI and MACD. Entry is favorable near 96–98 ₹ with cautious exit around 105–110 ₹. Long-term investors may hold for sector stability, while short-term traders should wait for breakout above 105 ₹.