IDFCFIRSTB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | IDFCFIRSTB | Market Cap | 70,544 Cr. | Current Price | 82.0 ₹ | High / Low | 87.0 ₹ |
| Stock P/E | 43.5 | Book Value | 54.4 ₹ | Dividend Yield | 0.30 % | ROCE | 6.23 % |
| ROE | 4.32 % | Face Value | 10.0 ₹ | DMA 50 | 82.4 ₹ | DMA 200 | 76.0 ₹ |
| Chg in FII Hold | 12.1 % | Chg in DII Hold | -1.95 % | PAT Qtr | 503 Cr. | PAT Prev Qtr | 352 Cr. |
| RSI | 44.0 | MACD | -0.12 | Volume | 2,84,38,581 | Avg Vol 1Wk | 3,23,58,576 |
| Low price | 52.5 ₹ | High price | 87.0 ₹ | PEG Ratio | 0.37 | Debt to equity | 7.03 |
| 52w Index | 85.6 % | Qtr Profit Var | 48.0 % | EPS | 2.11 ₹ | Industry PE | 15.8 |
📊 Chart Patterns & Trend: IDFC First Bank is consolidating near the 82 ₹ zone. Price is slightly below the 50 DMA (82.4 ₹) but above the 200 DMA (76 ₹), showing medium-term support but short-term indecision.
📈 Moving Averages: 50 DMA is acting as immediate resistance, while 200 DMA provides strong support. Sustained move above 83 ₹ could trigger bullish momentum.
📉 RSI: At 44.0, RSI indicates neutral-to-weak momentum, suggesting sideways consolidation.
📉 MACD: Slightly negative (-0.12), showing mild bearish crossover and lack of strong momentum.
📊 Bollinger Bands: Price is near the mid-band, reflecting consolidation. Breakout above 85 ₹ could open upside potential.
📊 Volume Trends: Current volume (2.84 Cr.) is lower than average weekly volume (3.23 Cr.), showing reduced participation and consolidation pressure.
🎯 Entry Zone: 78–80 ₹ (near 200 DMA support).
🎯 Exit Zone: 86–87 ₹ (resistance zone).
🔑 Stop Loss: 75 ₹ (below 200 DMA).
Positive
- Strong quarterly profit growth (48% QoQ increase).
- FII holdings increased significantly (+12.1%), showing institutional confidence.
- PEG ratio of 0.37 indicates undervaluation relative to growth.
- Price trading above 200 DMA supports medium-term strength.
Limitation
- High debt-to-equity ratio (7.03) raises leverage concerns.
- ROE at 4.32% and ROCE at 6.23% are weak compared to peers.
- Stock P/E at 43.5 is much higher than industry average (15.8), suggesting overvaluation.
Company Negative News
- Weak return ratios (ROE and ROCE) limit efficiency.
- DII holdings decreased (-1.95%), showing reduced domestic institutional confidence.
Company Positive News
- Quarterly PAT improved from 352 Cr. to 503 Cr., showing earnings momentum.
- EPS growth supports valuation despite high P/E.
- Strong 52-week performance (85.6% index gain).
Industry
- Industry PE at 15.8 vs. stock PE at 43.5 highlights premium valuation.
- Banking sector supported by credit growth and digital adoption trends.
Conclusion
⚖️ IDFC First Bank is in a consolidation phase with short-term weakness (MACD negative, RSI neutral). Medium-term outlook remains supported by strong FII inflows and earnings growth. Entry near 78–80 ₹ offers margin of safety, while breakout above 85 ₹ could trigger momentum toward 87 ₹. Risk management is essential due to high leverage and stretched valuation.
Would you like me to also prepare a peer benchmarking overlay comparing IDFC First Bank with other private banks like HDFC Bank, ICICI Bank, and Axis Bank to highlight relative strength and sector rotation opportunities?