Shares of the IDBI Bank surged in Tuesday's trade due to 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. It has declined by 15.06 per cent on a year-to-date basis. Around 8.78 lakh shares traded hands on the BSE, which was higher than the two-week average volume of 7.10 lakh shares. Turnover on the counter was at Rs 4.10 crore, with a market capitalisation m-cap of Rs 50,321. 24 crore.
The stock has risen 23 per cent from its 52 week high of Rs 62, hit on January 9 this year at today's day high of Rs 47.74. It has gained 56.53 per cent from its one-year low of Rs 30.50, which was touched on June 30, 2022.
Support on the counter could be seen at Rs 44, followed by Rs 45 and Rs 45.60 levels. The stock is facing stiff resistance around the Rs 49 -- 51 levels, according to analysts.
Sneha Seth, Derivatives Research Analyst at Angel One, said IDBI bank has corrected sharply from its January high of Rs 62. 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. Breaking below this level would open up further downside in the stock, and should be seen as a make-or-break level. On the higher side, Rs 49-51 should be seen as immediate hurdles. There has been some buying interest in IDBI from lower levels since the last couple of sessions, said Jigar S Patel, Senior Manager Technical Research Analyst at Anand Rathi Shares and Stock Brokers. The counter is facing stiff resistance near the Rs 48 level. The daily RSI has made an impulsive structure near oversold levels of 30 which is a positive sign. One can only buy after a daily closing of above Rs 48 for a target of 54 with a stop loss of Rs 45. Ravi Singh, Vice President and Head of Research at Share India, said that IDBI Bank share price is witnessing lower levels of buying, triggered by the major support of Rs 44. The disinvestment projections may maintain the high volatility nature of the investment. The momentum indicators suggest that IDBI Bank may remain strong on the technical setup and may reach a level of 52 in the near term. AR Ramachandran from Tips 2 said IDBI Bank has strong resistance on the daily charts at Rs 47.80. A close above that resistance could lead to targets of Rs 50.50 - 54 in the near term. IDBI Bank reported a 60 per cent increase in net profit to Rs 927 crore in the third quarter of 2022 against a profit of Rs 578 crore in the same period a year ago. The bank's net interest income NII went up 23 per cent in Q3 FY 23 to Rs 2,925 crore over Rs 2,383 crore in the year-ago period.
Promotors held 94.71 per cent of the state-owned lender as of December 2022. Life Insurance Corporation of India LIC alone owned 49.24 per cent of IDBI Bank, while the government held 45.48 per cent.
In late deals today, Indian equity benchmarks traded higher, led by gains in banks, financials, consumer durables and energy stocks. Some gains were capped by weakness in technology and consumer goods.