YES Bank shares hit 20% upper circuit, mcap tops Rs 87,800 crore mark; stock up 115% from 52-wk low

Shares of YES Bank Ltd extended their rally on Wednesday and hit upper circuit following the stake buy by HDFC Bank Ltd in the lender. The Reserve Bank of India (RBI) had approved HDFC Bank to acquire up to 9.5 per cent stake in YES Bank on Monday, the private lender said in the exchange filing. Shares of YES Bank jumped 20 per cent on Wednesday to hit a new 52-week high at Rs 30.42 during the session, with its total market capitalization hitting Rs 87,800 crore mark. The scrip had settled at Rs 25.42 in the previous trading session on Tuesday.  Shares of YES Bank surged more than 115 per cent from its 52-week low at Rs 14.10 hit in October 2023. The private lender is up about 33 per cent in two sessions. The stock has surged about 78 per cent in the last one year, while it is up 35 per cent in the year 2024 so far. The RBI, while granting the above referred approval has also conveyed that if the applicant (HDFC Bank) fails to acquire major shareholding within a period of one year from the date of aforesaid RBI letter, the approval shall stand cancelled, said the exchange filing by YES Bank. Commenting on YES Bank shares, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities said that the additional stake acquisition by HDFC Bank in YES Bank is largely positive for the latter one from the long-term perspective providing it stability. "However, one needs to see how this stake acquisition pans out over the period and YES Bank performs," he said. The applicant shall ensure that the aggregate holding in YES Bank does not exceed 9.50 per cent of the paid-up share capital or voting rights of the Bank at all times, it added. "If the aggregate holding falls below 5 per cent, prior approval of RBI will be required to increase it to 5 per cent or more of the paid-up share capital or voting rights of the bank." The stock is indicating a reversal nearing the key support of Rs 22.55, its 50-simple moving average (SMA). This momentum must now absorb all the selling pressure emerging in the range of Rs 26-25.50 to embark on the next upward rally, said Avdhut Bagkar Derivatives & Technical Analyst at StoxBox "The underlying trend continues to remain optimistic until the stock trades over its 200-SMA placed at Rs 18.50. A decisive breakout over 26 mark shall send the price action in the direction of Rs 30 to Rs 33 levels," he said. YES Bank has witnessed a decent rally from Rs 16 levels with series of higher lows pattern formation on the daily chart to peak out near Rs 26.25 zone and thereafter, with a short correction seen, has cooled off from the overheated zone, said Shiju Koothupalakkal - Technical Research Analyst at Prabhudas Lilladher. "The stock has taken support near the significant 50 EMA level of Rs 22.60 zone and indicated a bullish candle formation to improve the bias once again and with a higher low pattern forming improving bias. We expect the stock to rise till the initial target of Rs 27 and thereafter with strength sustaining can achieve the Rs 32. The near-term support would be at Rs 22.60," he said.

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