Buy IDFC First Bank in range of Rs. 31-32
Target: Rs. 38.5
Stop Loss: Rs. 28.4
Time frame: Three months
Derivatives & Quantitative Outlook
In the ongoing broader market recovery, stocks from the midcap and small cap space have found momentum but the financial space is still underperforming. However, apart from sectoral heavyweights, the select midcap banking space, especially IDFC First Bank, is witnessing buying interest at every decline. We expect IDFC First Bank to continue its positive momentum on the back of fresh long additions.
Open interest in IDFC First Bank has remained muted since March 2020 as it remained under pressure along with the market. The open interest seen in the May 2020 series was one of the lowest since November 2016. However, fresh longs were formed in the stock since the mid-June series along with a fresh up move. The OI has increased almost 25% in the last couple of months indicating buying interest in the stock.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_IDFCFirstBank_Sep20.pdf
Shares of IDFC First Bank Ltd was last trading in BSE at Rs.32.1 as compared to the previous close of Rs. 32.2. The total number of shares traded during the day was 3840189 in over 13676 trades.
The stock hit an intraday high of Rs. 32.35 and intraday low of 31.6. The net turnover during the day was Rs. 122830213.