YES Bank shares climb 4%, take 3-day rise to 17%; major hurdle at Rs 21, says an analyst

Shares of YES Bank jumped 4 per cent in Monday's trade, taking its recent rise to the third straight day. The stock has been in news after the Reserve Bank of India (RBI) gave an conditional approval to proposed investments by CA Basque Investments (a part of the group of entities doing business globally as ‘The Carlyle Group’) and Verventa Holdings (an affiliate of funds advised/managed by Advent).

The RBI gave approval to each investor with respect to the proposed acquisition by each of them of up to 9.99 per cent of paid up share capital of the bank through subscription to equity shares and share warrants of the Bank vide separate letters dated November 30, 2022.

YES Bank had on Friday said it received two further letters (separate to each investor) from the RBI in relation to the proposed investment.

"Pursuant to which, the bank shall now engage with the Investors for the completion of the proposed capital raise, subject to various regulatory compliances and conditions precedent as per the respective Investment Agreements," it had said.

Pravesh Gour, Senior Technical Analyst at Swastika Investmart said the counter has broken out of an Inverse Head and Shoulder formation, with long consolidation and a Triangle breakout on the longer time frame.

"It retested its previous breakout level and rallied in a V-shape. It is trading above its all-important moving averages. The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength. On the higher side, Rs 21 is the immediate resistance zone; above this, we can expect the Rs 24 levels in the near term. On the lower side, Rs 17.5 is the strong support during any correction," Gour said.

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