IDFC First Bank Shares Tumble: Trading Near Yearly Low

IDFC First Bank shares have fallen 23% in the last six months and are trading near their 52-week low. The stock hit a low of ₹59.24 on October 28, 2024, and a high of ₹89.60 on January 17, 2024. Currently, it is trading at ₹62.97 on the BSE. The bank’s market cap stands at ₹46,094 crore.

The bank reported a 73% year-on-year drop in net profit to ₹201 crore for the quarter ended September 2024, down from ₹751 crore a year earlier. This decrease was due to increased provisions for potential losses in its microfinance business. Loans and advances grew by 21.9% to ₹2,30,947 crore in the last quarter, while customer deposits increased by 28.8% to ₹2,27,266 crore.

Analysts suggest that IDFC First Bank shares are in a downtrend, with consistent lower highs and lower lows. The stock is trading below its 5-year breakout, which could act as resistance. Investors are advised to buy only if the stock closes above ₹70 on the weekly charts, which could lead to a move towards ₹90.

Support for the stock is at ₹59, with resistance at ₹66. A decisive move above ₹66 could trigger further upside to ₹72. The expected trading range is between ₹60 and ₹72 in the short term.