IDBI Bank shares soar 14% to hit one-year high; will this strong up move continue?

Shares of IDBI Bank Ltd saw a sharp rise during late trading session on Wednesday. The stock jumped 13.78 per cent to hit a one-year high of Rs 86.97. At this price, the scrip has ascended by 50.70 per cent from its 52-week low of Rs 42.88, a level seen on March 28 last year.

The lender has recorded a 57 per cent growth in its net profit, at Rs 1,458 crore, in the third quarter ended on December 31, 2023, due to lower provisioning and better interest income. The bank had a net profit of Rs 927 crore in Q3 FY23.

In Q3 FY24, the bank's interest income improved to Rs 6,541 crore as against Rs 5,231 crore in the same period last fiscal. The gross non-performing asset (NPA) ratio also improved to 4.69 per cent as on December 31, 2023 from 13.82 per cent in Q3 FY23.

On the technical setup, support on the counter could be seen at Rs 75. And, a decisive close above Rs 85 is required for a further upward move. That said, an analyst suggested booking profits at current levels.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "One can anticipate for a further rise in the coming days with targets of Rs 85-91 levels visible."

AR Ramachandran from Tips2trades said, "IDBI Bank stock price looks bullish but also overbought on daily charts with next resistance at Rs 87.7. Investors should book profits at current levels."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 75 and resistance at Rs 85. A decisive close above Rs 85 level may trigger a further upside till Rs 90."

DRS Finvest founder Ravi Singh "Immediate resistance is at Rs 85 and a decisive close above this level is required for a further rise. Support will be at Rs 77."

As of December, the government and Life Insurance Corporation of India (LIC) held 94.71 per cent stake in the lender.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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