IDFC First Bank shares down 23% in six months, trading near 52-week low; more pain ahead?

Shares of IDFC First Bank Ltd are trading near their 52-week low reached in October-end last year. IDFC First Bank stock fell to a low of Rs 59.24 on October 28, 2024 and rose to a 52-week high of Rs 89.60 in January 17, 2024. In the current session, IDFC First Bank stock was trading flat at Rs 62.97 on BSE against the previous close of Rs 62.62 on BSE. IDFC First Bank stock has fallen 30% from its 52 week high till date. 

Total 10.71 lakh shares of the firm changed hands amounting to a turnover of Rs 6.73 crore. Market cap of the firm stood at Rs 46,094 crore on BSE. 

IDFC First Bank stock has lost 28 per cent in a year and fell 23 per cent in six months. 

In terms of technicals, the relative strength index (RSI) of the banking stock stands at 43.2, signaling the stock is neither oversold nor overbought. IDFC First Bank shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.    

Gaurav Bissa, VP, InCred Equities said, "IDFC First has been trading in a downtrend on daily charts with consistent formations of lower highs and lower lows. It is also trading below the 5-year breakout which is likely to act as resistance going forward. While the RSI has settled around 30 levels on the weekly charts, it has still not tested 25 levels which has resulted in long term bottom formations in the past implying it may continue to trade under pressure. Investors are advised to buy IDFC First only above a close of 70 levels on the weekly charts, which can then result in a move towards 90 levels."

AR Ramachandran, SEBI registered Independent analyst said, "IDFC First Bank stock price is bearish on the daily charts with strong resistance at 66.2. A Daily close below the support of  Rs 61.5 could lead to a target of Rs 58.6 in the near term."
 
Jigar S Patel from Anand Rathi said, "Support will be at Rs 59 and resistance at Rs 66. A decisive move above the Rs 66 level may trigger a further upside of Rs 72. The expected trading range will be between Rs 60 till Rs 72 for the short-term."

The lender reported a 73% year-on-year fall in net profit to Rs 201 crore in the quarter ended September 2024 from Rs 751 crore a year earlier. Profit slipped as the bank increased provisions to cover for any future losses in its microfinance business.

In Q3 of this fiscal, Loans & advances climbed 21.9% to Rs 2,30,947 crore in the last quarter against Rs 1,89,475 crore as of December 31, 2023. The QoQ growth stood at 3.7%.

Customer deposits grew 28.8% to Rs 2,27,266 crore as of December 31, 2024 against Rs 1,76,481 crore as of December 31, 2023.