IDBI Bank shares tumble over 28% in five sessions; analysts weigh in

Shares of IDBI Bank Ltd continued their downward trend for the fifth consecutive session on Tuesday, slipping 3.83 per cent to close at Rs 74.05. Over the five trading days, the stock has corrected 28.21 per cent. The decline follows the Centre's decision to scrap the strategic sale of IDBI Bank.

The government called off the sale after financial bids from shortlisted investors fell below the reserve price, highlighting a gap between valuation expectations and investor interest. Officials stated that the process would be revisited at a later stage.

"It is not the best environment to have proceeded with," said a government official.

Meanwhile, analysts remain cautiously optimistic on the stock, citing key support at Rs 68–73 and immediate resistance at Rs 78–82.

Kranthi Bathini, Equity Strategist at WealthMills Securities, said, "There is no clarity on disinvestment, which has been an overhang on the stock for quite some time. The bank has also missed disinvestment timelines in the recent past. With that being said, existing investors may consider continuing to hold the stock."

Ravi Singh, Chief Research Officer at Mastertrust, noted that the stock has declined sharply. He added that investors can consider buying, with a stop loss of Rs 68 and a near-term target of Rs 85. 

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "On the levels front, the Rs 70-68 zone is likely to act as sacrosanct support and might mitigate the downfall. It is advisable to maintain a cautious stance in the counter until the bearish gap placed at Rs 82-92 is filled on the higher end."

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, stated, "Support is seen at Rs 73, while resistance is placed at Rs 78. A decisive move above Rs 78 could push the stock towards Rs 80, with the expected short-term trading range pegged between Rs 73 and Rs 80."