YES Bank shares fall 7% from recent high; here are the key levels to watch

Shares of YES Bank are losing steam after recent momentum. The private lender rose about 40 per cent from its recent lows around Rs 15.9 to hover around Rs 21-level but finally settled at Rs 19.60, down 3 per cent for the day. The stock has retreated 7 per cent from its recent highs.

The total market capitalization of YES Bank stood more than Rs 56,350 at Tuesday's close on NSE. More than 20.35 crore shares of the lender, amounting to Rs 405.66 crore, were traded for the day on the exchange. Similarly, over 3.63 shares worth Rs 72.33 exchanged hands on BSE. The volumes were roughly about half of its two-week average on the BSE.

On Monday, YES Bank informed the appointment of Tushar Patankar as Chief Risk Officer (CRO) of the Bank for the period of three years, effective from December 01, 2023. "However, he joined the Bank effective from Monday, that is, November 20, 2023 as senior management personnel of the lender," it said.

YES Bank has confirmed a range breakout above Rs 19.50 and it is preparing for the higher levels of Rs 22 and Rs 24 in the coming weeks. On the downside, support is placed at Rs 17. Till the time this support is not breached we maintain a buy on dips stance for the stock, said Mehul Kothari, Technical Head at Anand Rathi Shares & Stock Brokers.

Other technical analysts suggest that the stock is witnessing a stiff resistance at higher levels and until those barriers are not taken down, the stock is likely to remain range-bound as the stock is not signaling to breach the near-term support levels. However, on the upside, the gains appear to be capped.

The stock after the decent rally witnessed from Rs 16 levels has shown resistance near Rs 21 zone slipping to some extent with some profit booking seen and has Rs 18.50-19 level as the near-term support zone, said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

"The overall bias is maintained positive with RSI also cooling off from the highly overbought zone which is a healthy sign and once Rs 18.50 – 19 zone is sustained, one can anticipate a second round of momentum. A decisive breach below Rs 18.50 shall slightly weaken the bias and can expect for further slide. At the same time, a decisive breach above Rs 21 zone shall indicate a breakout with the next higher target expected till Rs 24.50-25 levels to retest the previous peak zone," he said.

"We are observing an accumulation in the range of Rs 18-19 levels on the daily chart of the Yes Bank. At present, the stock is facing strong resistance at Rs 21 levels. Any move above the resistance level would propel the momentum on the upside," said Mileen Vasudeo, Sr Technical Analyst, Arihant Capital.

Even the momentum indicator, MACD, is positively poised. Hence, one can hold the stock at a current levels Rs 19 with a stop loss of  Rs 17 for a target of  Rs 23–25 levels in a couple of weeks, said.

YES Bank had reported a 47.4 per cent rise in the net profit on a year-on-year (YoY) basis at Rs 225.21 crore, while its net interest income (NIIs) was up 3.3 per cent YoY at Rs 1,925 crore in the September 2023 quarter. Earlier this month, YES Bank declared that it has received Rs 120 crore from sale of NPA portfolio to JC Flowers ARC.

After the Q2 earnings, domestic brokerage firm ICICI Securities recently upgraded the rating for YES Bank stock to 'reduce' from 'sell' but maintained its target price at Rs 14 on it. Another homegrown broker, Kotak Institutional Equities has a fair value target of Rs 17 for the lender. However, global brokerage Nomura has a target of 16.50 apiece on the YES Bank.

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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