IDFCFIRSTB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 4.4

📈 IDFCFIRSTB is in a strong uptrend with bullish momentum and breakout volume, though short-term overbought signals suggest caution.

📊 Technical Analysis

• Trend Status: Trending — price is at its 52-week high and well above key moving averages.
• Moving Averages: Price ₹82.0 is above both 50-DMA (₹73.5) and 200-DMA (₹70.2), confirming strong bullish trend.
• RSI (75.2): Overbought zone, indicating strong momentum but potential for short-term pullback.
• MACD (2.36): Positive crossover, reinforcing bullish sentiment.
• Bollinger Bands: Price near upper band, suggesting strength but also resistance.
• Volume: Current volume (10.64 Cr) is more than double the weekly average (5.12 Cr), confirming breakout strength.

🎯 Entry & Exit Zones

• Support Levels: ₹78, ₹73.5 (50-DMA)
• Resistance Levels: ₹82.6 (52-week high), ₹85
• Optimal Entry: ₹78–₹80 (on pullback)
• Exit Target: ₹85–₹88 (resistance zone)

✅ Positive

• Massive FII inflow (+8.34%) signals strong foreign investor confidence.
• PEG ratio of 0.39 suggests undervaluation relative to growth.
• Quarterly profit growth of 75.6% reflects strong operational performance.
• Stock has surged 97.8% from its 52-week low, confirming bullish trend.

⚠️ Limitation

• RSI in overbought territory may lead to short-term correction.
• High debt-to-equity ratio (6.86) is typical for banks but still a risk factor.
• ROE (4.32%) and ROCE (6.23%) are relatively low, indicating modest return efficiency.

📉 Company Negative News

• Quarterly PAT declined from ₹463 Cr to ₹352 Cr, showing margin pressure.
• DII holdings dropped by 1.50%, reflecting domestic investor caution.

📈 Company Positive News

• EPS of ₹1.99 and strong YoY profit growth support valuation expansion.
• Breakout volume and price action suggest institutional accumulation.

🏭 Industry

• Banking sector remains robust with improving credit demand and digital transformation.
• Industry P/E (14.5) is significantly lower than IDFCFIRSTB’s (45.9), indicating premium valuation.

🧾 Conclusion

• IDFCFIRSTB is trending strongly with bullish technicals and institutional support.
• Entry near ₹78–₹80 could offer a favorable setup with targets around ₹85–₹88.
• Investors should monitor RSI and volume for signs of exhaustion or continuation.