Shares of state-owned IDBI Bank surged in Tuesday’s trade amid heavy volumes. The stock jumped 5.69 per cent to hit a day high of Rs 47.74 over its previous close of Rs 45.17. The scrip has gained 4.58 per cent in a year. However, it has declined 15.06 per cent on a year-to-date (YTD) basis. Around 8.78 lakh shares changed hands today on BSE, which was higher than the two-week average volume of 7.10 lakh shares. Turnover on the counter stood at Rs 4.10 crore, commanding a market capitalisation (m-cap) of Rs 50,321.24 crore.
At today’s day high of Rs 47.74, the stock has corrected 23 per cent from its 52-week high level of Rs 62, hit on January 9 this year. That said, it has gained 56.53 per cent from its one-year low of Rs 30.50, touched on June 30, 2022.
Support on the counter could be seen at Rs 44, followed by Rs 45 and Rs 45.60 levels. Analysts largely suggested that the stock faces stiff resistance around Rs 49-51 levels.
Sneha Seth, Derivatives Research Analyst at Angel One, said, “IDBI bank has corrected sharply from a high of Rs 62 seen in January this year. However, it has now reached its important support zone of 200-SMA on the daily and 89-EMA on the weekly charts, around the Rs 44-45-odd zone. This should be seen as a make-or-break level because breaking below this would open up further downside in the stock. On the higher side, Rs 49-51 should be seen as immediate hurdles.”
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “Since the last couple of sessions, we have seen some buying interest in IDBI from lower levels. But the counter is still facing stiff resistance near the Rs 48 level. Moreover, daily RSI has made an impulsive structure near oversold levels of 30 which is a positive sign. One can buy only after a daily closing of above Rs 48 for a target of 54 with a stop loss placed at Rs 45.”
Ravi Singh, Vice President and Head of Research, Share India, said, “IDBI Bank share price is witnessing lower levels buying, triggered around the major support of Rs 44. The disinvestment projections may maintain the high volatility nature. On technical setup, IDBI Bank may remain strong as suggested by the momentum indicators and may touch a level of Rs 52 in the near term.”
AR Ramachandran from Tips2trades said, “IDBI Bank has strong resistance at Rs 47.80 on the daily charts. A close above this resistance could lead to targets of Rs 50.50-54 in the near term. Support will be at Rs 45.60.”
On the earnings front, IDBI Bank reported a 60 per cent growth in net profit to Rs 927 crore in the third quarter that ended on December 31, 2022, against a profit of Rs 578 crore in the same period a year ago. The bank’s net interest income (NII) improved by 23 per cent in Q3 FY23 to Rs 2,925 crore over Rs 2,383 crore recorded in the year-ago period.
As of December 2022, promotors held 94.71 per cent of the state-owned lender. Life Insurance Corporation of India (LIC) alone owned 49.24 per cent of IDBI Bank, while the government held the rest 45.48 per cent.
Meanwhile, Indian equity benchmarks traded higher in late deals today, led by gains in banks, financials, consumer durables and energy stocks. Although, weakness in technology and consumer goods capped some gains.
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