However, the stock has developed a higher-high, higher-low pattern on the chart, which suggests a sharper upward rise after it sustains above levels of 70 for each.
One of the Dalal Street banking stocks that have provided outstanding returns to its stockholders over the past six months is IDFC First Bank. However, because of the hawkish interest rate environment and anticipated growth in the corporate loan market, stock market analysts are still anticipating a strong rise in the share price of IDFC First Bank. They said that IDFC First Bank’s specialised credit card offerings and emphasis on internet lending have made the private lender one of the country’s up-and-coming Gen-X Banks.
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The shares of IDFC First Bank have given a breakout at 45 per share levels, according to stock market specialists, and are currently trading in the 45 to 60 region. Once it passes the 60 barriers, it can increase to 70 levels per level. However, the stock has developed a higher-high, higher-low pattern on the chart, which suggests a sharper upward rise after it sustains above levels of 70 for each.
Market analysts continued by stating that if the share price of IDFC Bank maintains above $70, the banking stock may touch triple digits in the short to medium term. By the end of 2023, the share price of IDFC First Bank may reach $ 120 per unit level.
Vice President of Research at IIFL Securities, Anuj Gupta, discussed why he was optimistic about IDFC First Bank’s stock, “Like any other Indian bank, IDFC Bank is anticipated to gain from an increase in its retail banking operations as a result of the hawkish interest rate policy.”
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In addition, it has experience with corporate sponsorship. Corporations are anticipated to seek local loan sources after the dollar index declines because international lending has increased in cost.
Therefore, the market anticipates a strong improvement in IDFC First Bank’s margins in the upcoming quarterly numbers. IDFC First Bank is likely to benefit on both the retail and corporate banking fronts.
