YES Bank share price target: Monthly chart gives cues on where the stock is headed

The YES Bank Ltd stock, which had 49,10,878 small investors at last count, has come off some 16 per cent from its recent high, making traders wonder whether the recent breakout rally is over. Still up 17.44 per cent year-to-date, the scrip is down 23 per cent from its 52-week high of Rs 32.81 hit on February 9. YES Bank is trading above its crucial moving averages and the momentum indicator Relative Strength Index has rebounded to around 58 level.

For those who entered the stock at lower levels, adopting a prudent strategy involves booking partial profits at the current market price, Mandar Bhojane, Equity Research Analyst  Choice Broking  said. Additionally, implementing trailing stop-loss orders can protect gains while allowing for further upside potential, he said.

The analyst said the stock formed a 'Rounding Bottom' pattern breakout with substantial volumes, signaling a robust bullish reversal from the bottom. The YES Bank stock price, he said, has successfully breached the previous swing high of Rs 32 on June 1, 2020, reaching a high of Rs 32.85.

"Since the breakout at the Rs 22.35 level, the price has surged by 46 per cent. On the weekly chart, it retraced to retest the breakout level before bouncing back, highlighting the stock's bullish sentiment. The stock benefits from a solid support zone within the range of Rs 22-20 levels, closely aligned with key moving averages such as the 20, 50, and 100 Day EMA. This convergence not only enhances the stock's stability but also reinforces its potential for an upward movement," he said.

Osho Krishan, Senior Analyst, Angel One said YES Bank has witnessed wild swings in the last couple of trading weeks, with a strong pick up in the volume activities. The stock has recently gained traction and soared from Rs 23 to Rs 33-odd zone, post which has undergone some profit booking. "It has definitely been among the volatile counters in the last couple of weeks with its whipsaw moves. Though, from a technical standpoint, till it sustains above the Rs 23-21 odd zone, any blips are likely to augur well for the buyers. While on the higher end, a series of resilience can be seen from the 29-32 zone. An authoritative closure above the same could only trigger the next leg of the rally in the counter," he said.

"The sustenance above the neckline (23-22) would likely favor the bulls, and the stock is likely to continue its upward trend," he said.

On Thursday, the scrip was 4 per cent intraday at Rs 26.48 on BSE. Rupak De, Senior Technical Analyst at LKP Securities said the YES bank stock has risen sharply following a breakout during consolidation on the monthly chart, indicating a sudden rise in optimism among traders. That said, it failed to sustain the selling pressure around the historical consolidation high of Rs 32, resulting in the recent decline.

A decisive move above Rs 33, he said, might propel the stock towards Rs 50 level. A support is seen at Rs 22, he said.

"The stock traded above the Fast (21) EMA and trading near Slow (50) EMA which will act as resistance. A surpass above 50-EMA will attract more buyers and more upward move can be witnessed. On the momentum front Relative Strength Index (RSI) is trading above the median, supporting the price action. On the directional front DI+ is trading above DI- which indicates an uptrend in the security, whereas ADX trading above DI- indicates strength in the upward move. Hence based on above technical setup accumulation can be done between 10-21 level," said Bonanza Portfolio.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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