Stocks to buy today: IDFC First share price witnessed some profit booking in the early morning session on Monday. IDFC First Bank share price today opened with a downside gap at ₹73.69 per share on the NSE and touched an intraday low of ₹73.05 apiece within a few minutes of stock market opening bell. The private bank declared its Q1 results 2024 on Saturday, and IDFC First shares were under the market radar. According to stock market experts, IDFC First Bank's Q1 results 2024 look muted due to a rise in the provisioning during the April to June 2024 quarter. They said that IDFC First Bank has registered decent deposit growth despite a challenging time for the banking industry. They added that the bank's NPA has also improved, which is a good sign. They advised bottom fishing in IDFC First Bank shares as the stock is in an oversold zone.
Decoding the IDFC First Bank's Q1FY25 results, Manish Chowdhury, Head of Research at StoxBox, said, “IDFC First Bank came out with a muted set of numbers primarily due to increased provisions in JLG (joint liability group) business due to floods in Tamil Nadu. However, the bank showed decent deposit growth amidst challenging times across the banking Industry. Though Q1FY25 is usually a weak quarter for the bank, its NPA appears to be improving, showing that it won't face future stress on its asset quality. Furthermore, the bank will have to focus on reducing its cost-to-income ratio, which is in the range of 70 percent, to sustain in the long term.”
The StoxBox expert added that the issue of its legacy borrowing has seen significant improvement, marking that the bank's performance will improve from hereon. The credit card business is projected to contribute positively to this improvement, with a 650bps improvement in the C-I ratio.
Speaking on the technical outlook of IDFC First Bank shares, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said, "On the weekly chart, IDFC First Bank share has entered an oversold zone, indicating potential for a rebound. IDFC First Bank share's immediate support zone is between ₹68 and ₹70. A fresh buy signal is possible only if the stock moves above the ₹78 mark, with resistance expected in the ₹82 to ₹88 range. At the current juncture, traders should wait for a clear price reversal action before making any new investments. Once a reversal is confirmed, buying opportunities can be considered with a stop loss set at ₹68, targeting a price of ₹82 for the near term."
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
