IDFC First Bank cmp 80.
Stock price rallied from levels of 53 in March 2023 to 100 in September 2023 and since then went into a triangular consolidation which has lasted for more than 6 months now. Important thing to observe that all during this correction, stock price has not gone below 50% retracement level of its previous rally, which shows some strength and resilience in a routine correction.
An interesting observation is a gap which was posted on 28-03-2024 when a big institution offloaded a big chunk of its holding in IDFC first bank. When there is a gap at the fag end of a correction, and is immediately filled in next day or few days, ( here it got filled very next day) it is an example of an exhaustion gap. This often signifies exhaustion on the part of sellers and can be a fertile ground for a change in trend.
The triangular consolidation drawn on the daily chart would end once the stock price closes above the breakout level from triangle which happens to be 83-84 currently. The prior upmove from 53 to 100 resembles a flag pole like structure and the triangular consolidation resembles a flag/pennant. Target for breakout based on this kind of structure comes to around 115-120.
For anyone wanting to do fundamental research, IDFC First is a well researched stock and company does regular presentations and concalls.
disc: invested.
Subscribe To Our Free Newsletter |