YES Bank shares extend gains, stock rises 15% in three days; what do charts suggest?

Shares of YES Bank extended its gains on Tuesday as the stock gained another 3 per cent. The stock has surged about 15 per cent in the last three sessions. The stock has been hogging limelight at Dalal Street amid the settlement between JC Flowers Asset Reconstruction Company and Subhash Chandra, backed by heavy trading volumes.

The private lender, in an exchange filing clarified, that JC Flower ARC is not its asset reconstruction arm and its association with the asset reconstruction company is limited only to the extent of its current shareholding of 9.99 per cent only.

"The bank would like to clarify that post the sale of the identified loan portfolio to JC Flowers ARC in December 2022 (disclosed earlier on December 17, 2022), the bank has no further role in settlements/ negotiations being undertaken by JC Flowers ARC," said YES Bank in the exchange filings.

Shares of YES Bank rose another 3 per cent to Rs 19.12 on Tuesday, commanding a total market capitalization of around Rs 55,000 crore. The scrip had settled at Rs 18.61 on Monday, rising 8 per cent. The stock has surged more than 15 per cent from Rs 16.7 on Friday.

According to some media reports, JC Flowers ARC and media mogul Subhash Chandra have reached a settlement regarding an outstanding debt of Rs 6,500 crore. The agreement entails JC Flowers accepting 75 per cent reduction in the debt, leading Chandra to repay JC Flowers Rs 1,500 crore.

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With this payment, Subhash Chandra has been able to regain control over the family's stake in assets including Dish TV, Zee Learn, and three properties, among them a central Delhi bungalow, said the reports. The settlement's terms state an initial 15 per cent payment within the first 30 days, with the remaining amount scheduled over the subsequent six months, as per the reports.

The board of the private lender decided to extend the tenure of Chief Risk Officer Sumit Gupta for a period of three months. Gupta was made the Chief Risk Officer of the bank on August 28, 2020, for a period of three years, it told the bourses in through a separate exchange filing.

YES Bank has indicated a bullish positive candle on the daily chart after a short span of consolidation phase moving past the significant 200 period MA to improve the bias and further rise can be anticipated, said Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher

"The near-term target would be around Rs 18.55 levels where there is a resistance and further ahead with a decisive breakout would open the gates for the next target of Rs 21-22 levels. The near-term support is maintained at around Rs 16.70 zone. The RSI has indicated a trend reversal to signal a buy and has further upside potential movement in the coming days," she added.

Image: YES Bank-Chart

YES Bank on its daily has witnessed a consolidation breakout @ 18.45 levels with strong volumes. A retracement from the highs of Rs 24.75 levels to the lows of Rs 14.40 levels, unfolds the daily chart with precise breakout, resistance & target levels, said Sujit Deodhar, Head Technical Analyst at Wellworth Share & Stock Broking.

"As seen on the charts, the level of Rs 18.35 was acting as a hurdle and the stock now has breached it. The next level of resistance is placed at Rs 22 levels, followed by target set at Rs 31 levels. So, for traders it’s an opportunity to buy this stock at current levels of 18.50 where it offers a best risk to reward ratio, with a protective stop loss placed below 16 levels," he added.

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