IDFC First Bank shares recently saw a sharp decline, creating mixed sentiments among investors. With the bank’s Q2 results due to be announced, understanding the underlying market dynamics is crucial for investors deciding on the next steps.
Key Points
- Current Share Performance: Over the last week, IDFC First Bank shares dropped over 8%, sliding from ₹71.55 to ₹65.57, ahead of the Q2 results. This marks significant selling pressure, leading to speculations on future performance.
- Anticipated Results: Stock market experts expect a strong overall performance for the bank, though a potential dip in net profit due to increased provisions could limit gains.
- Support and Resistance Levels: IDFC First Bank’s immediate support level stands at ₹61, with resistance at ₹76. Investors are advised to watch for a breakout above ₹76 to assess potential upward momentum.
Q2 2024 Results Preview
Experts anticipate robust growth in advances and deposits for IDFC First Bank. According to a market analysis from Axis Securities:
- NII Growth: Projected to rise by 24% YoY and 4.3% QoQ.
- Asset Quality and Provisions: The bank may face a rise in provisions by 15.4% sequentially, potentially placing pressure on net profits.
- NIMs and Credit Costs: While NIMs are likely to remain stable, slight deterioration in asset quality could arise from increased credit costs.
| Metrics | Expected YoY Change | Expected QoQ Change |
|---|---|---|
| Advances Growth | +24% | +4.3% |
| Deposit Growth | Moderate Increase | Moderate Increase |
| Net Profit | Potential Decline | Potential Decline |
| Provisions | +117% | +15.4% |
Expert Insights on Share Outlook
Sugandha Sachdeva, founder of SS WealthStreet, suggests investors hold IDFC First Bank shares with a stop loss at ₹61, waiting for a breakout above ₹76 to signal an upward trend. Sachdeva notes that breaking the ₹61 support could lead to further declines, potentially hitting ₹52, whereas a breach of ₹76 may see shares reaching ₹84.50.
Should You Buy IDFC First Bank Shares?
Market experts recommend cautious optimism. Investors should consider waiting for a confirmed breakout above ₹76, as this level may signal sustained upward momentum.
Disclaimer
This article does not constitute financial advice. Please consult a financial advisor for personalized investment decisions.