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IDBI - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

Last Updated Time : 02 Feb 26, 09:51 am

Technical Rating: 3.6

Stock Code IDBI Market Cap 1,05,782 Cr. Current Price 98.4 ₹ High / Low 118 ₹
Stock P/E 11.0 Book Value 64.0 ₹ Dividend Yield 2.14 % ROCE 6.76 %
ROE 13.6 % Face Value 10.0 ₹ DMA 50 100 ₹ DMA 200 94.7 ₹
Chg in FII Hold 0.05 % Chg in DII Hold 0.01 % PAT Qtr 1,935 Cr. PAT Prev Qtr 3,627 Cr.
RSI 45.4 MACD -0.99 Volume 1,61,92,542 Avg Vol 1Wk 1,04,10,119
Low price 66.1 ₹ High price 118 ₹ PEG Ratio 0.24 Debt to equity 4.87
52w Index 61.6 % Qtr Profit Var 1.42 % EPS 8.95 ₹ Industry PE 15.8

📊 Chart Patterns & Trend: The stock is currently consolidating near the 98–100 ₹ zone. Price is below the 50 DMA (100 ₹) but above the 200 DMA (94.7 ₹), indicating medium-term support but short-term weakness.

📈 Moving Averages: 50 DMA is acting as resistance, while 200 DMA provides support. A decisive move above 100 ₹ would signal momentum strength.

📉 RSI: At 45.4, RSI is neutral to slightly weak, suggesting limited buying strength and potential sideways consolidation.

📉 MACD: Negative (-0.99), showing bearish crossover and short-term weakness.

📊 Bollinger Bands: Price is near the mid-band, suggesting consolidation. A breakout above 102 ₹ could trigger momentum.

📊 Volume Trends: Current volume (1.61 Cr.) is higher than average weekly volume (1.04 Cr.), indicating active participation despite consolidation.

🎯 Entry Zone: 95–97 ₹ (near 200 DMA support).

🎯 Exit Zone: 106–110 ₹ (resistance zone).

🔑 Stop Loss: 92 ₹ (below 200 DMA).


Positive

  • Strong ROE at 13.6% compared to industry peers.
  • Low PEG ratio (0.24) indicates undervaluation relative to growth.
  • Dividend yield of 2.14% adds income stability.
  • Price trading above 200 DMA shows medium-term strength.

Limitation

  • High debt-to-equity ratio (4.87) raises leverage concerns.
  • ROCE at 6.76% is weak, showing limited efficiency.
  • Quarterly profit dropped from 3,627 Cr. to 1,935 Cr., indicating earnings volatility.

Company Negative News

  • Recent decline in quarterly PAT highlights earnings pressure.
  • High leverage could limit future expansion and profitability.

Company Positive News

  • Stable FII and DII inflows (minor positive changes in holdings).
  • EPS at 8.95 ₹ supports valuation strength.
  • Strong 52-week performance (61.6% index gain).

Industry

  • Industry PE at 15.8 vs. stock PE at 11.0 shows IDBI is undervalued compared to peers.
  • Banking sector remains supported by credit growth and government reforms.

Conclusion

⚖️ IDBI is in a consolidation phase with short-term weakness (MACD negative, RSI neutral). Medium-term outlook remains supported by 200 DMA and undervaluation relative to peers. Entry near 95–97 ₹ offers margin of safety, while breakout above 102 ₹ could trigger momentum toward 110 ₹. Risk management is crucial due to high leverage and earnings volatility.

Would you like me to also prepare a peer benchmarking overlay (comparing IDBI with other PSU banks like SBI, PNB, and Bank of Baroda) so you can see relative strength and sector rotation opportunities?

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