Deciphering Market Trends: IDFC First Bank, Nifty and Bank Nifty

  • Stock Market Analysis

In today’s article, we will delve into the prospects of IDFC First Bank Ltd (NS: IDFB ). Moreover, I have also attached a video in which I have taken a look at the Nifty and Bank Nifty . In my last video on September 19th, I shared that the indexes had reached a top, as certain technicals highlighted that. Plus, the PSU Banking data showed that the run had reached a temporary halt. This analysis of mine was spot on, as in the next trading session the indexes commenced their momentous fall which in turn resulted in the Nifty falling from 20,260 to 19,550 in six trading sessions, which was a very profitable move.

Now coming to IDFC First Bank. The stock piqued my interest for two reasons. The first is, that the stock is also in the FNO segment. Hence, traders can capture the upcoming quick move. Secondly, on the equity front, the chart has formed a great base for the next upswing. 

Now coming to the chart, IDFC First Bank has managed to negate the bearish rout that has hit the Indian financial market, which is an impressive feat. I say this because, in the past sessions, the stock has formed neutral candles while the banking indexes have formed sizeable bearish candles. This divergence has helped underline the strong technicals of the equity. Hence, if IDFC First Bank can break above the resistance at Rs. 98.2, then I expect the stock to have a rather clean-up move until Rs. 104. If it manages to break this too, then Rs. 110 comes into play. However, it’s crucial to exercise caution until the Rs. 98.2 resistance level breaks.

In summation, IDFC First Bank exhibits a strong potential for growth in the near future. While the overall market dynamics may be in a state of instability, my analysis indicates that the stock is positioned favorably. Lastly, do watch the video shared, as my last video on the indexes let traders catch a huge down move. Also, do subscribe for more insights as we navigate the dynamic world of finance together.

Happy trading!

Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Thus, you must trust your analysis and judgment before making investment decisions. The report provided is for informational purposes only and should not be interpreted as a proposition to buy or sell any securities.

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