IDFC First Bank share price dips after 3 straight sessions of rise: Should you buy or sell the stock?

Stock Market Today: IDFC First Bank share price declined slightly in the morning trades on Wednesday after having risen for 3 straight sessions. Should you buy or sell the stock?

IDFC First Bank Share price movement

IDFC First Bank share price has been on the rise in the recent past, having risen more than 12% in the last month. The IDFC First Bank share price, which had ended with gains during the past 3 straight sessions, however, saw some decline on Wednesday in the opening trades.

IDFC First Bank share price opened at ₹77.46 on the BSE on Wednesday, slightly higher than the previous day's closing price of ₹77.24, though it gained slightly to the ₹77.50 level. IDFC First Bank share price, however, dipped to the ₹76.83 level thereafter.

IDFC First Bank Share Price—Analysts views

Analysts remain positive on IDFC First Bank, and Investec has upgrades the stock recently as it feels operating leverage is a powerful earnings driver

Investec sees IDFC First Bank delivering 29% compound annual growth (CAGR) in core pre-provision operating profit, or PPOP CAGR, over FY25-28 (highest across banks), aided by ~80 basis point reduction in cost-to-assets. This, combined with a ~90 bps decline in credit cost from elevated levels over FY25-28 (estimated), should help drive 1.3% RoA by FY28 (vs 0.5% in FY25) and sector-leading 57% Earnings per share CAGR, as per Investec

IDFC First Bank Share Price—Technical View

IDFC First Bank shares have broken out of a bullish 184-day-long rounding bottom pattern and is now heading towards the crucial weekly swing high of ₹84.5—a key trend changer level on the weekly charts, said Anshul Jain, Head of Research at Lakshmishree Investment.

A decisive breach and sustain above ₹84.5 will shift the structure from mildly bullish to strongly bullish, paving the way for the stock to target its all-time highs in the sessions ahead. Traders should watch for strong volume confirmation to build conviction as the stock approaches this critical level, added Jain.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.