YES Bank Share Price Today: Private lender Yes Bank’s shares have been rallying for last three trading sessions. Yes Bank share price today opened on the higher side and went on to hit 2-year high of Rs 22.80 apiece levels on NSE, logging around 27 per cent rise from its Thursday close of Rs 17.75 levels.
The stock has been in news recently after the RBI gave an conditional approval to proposed investments by CA Basque Investments and Verventa Holdings. The central bank 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.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities said the stock price, as per weekly timeframe chart, is indicating a formation of significant bottom reversal pattern like rounding bottom and is currently witnessing an upside breakout of the rounding bottoming pattern.
The sharp upside breakout of down sloping multi-month trend line resistance, he said, has been unfolded on the monthly timeframe, he said.
“The volume has started to expand during upside breakout in the stock price and the weekly and monthly 14-period RSI are showing positive indication. The medium-term uptrend in YES Bank is likely to continue and the next upside targets to be watched around Rs 25 and the next Rs 31, which could be achieved in the next 3-5 months. Any downward correction till Rs 19.50 could be a buy on dips opportunity for the near term,” Shetti said.
Pravesh Gour, Senior Technical Analyst, Swastika Investmart noted that YES Bank stock is trading above most moving averages and that the momentum indicator Relative strength index (RSI) is also positively poised. MACD (moving average convergence divergence), on the other hand, is supporting the current strength, he said.
This analysts expects the stock to hit Rs 24 level in the near term. On the lower side, Rs 17.50 is the strong support during any correction, he said.
However, some analysts remain cautious ahead of the three-year lock-in period of big investors. In March 2020, lenders like Axis Bank, ICICI Bank, Kotak Mahindra Bank, IDFC First Bank had bought stake in Yes Bank.
“If you’re getting very excited about Yes Bank and all the stuff that’s happening, remember that the 3 year lock-in for 75% of the pre-drama shares expires in March 2023, 3 months from now. Lots of liquidity coming, and the news will be all over the place roughly end-Feb,” Deepak Shenoy, founder and CEO of Capital Mind said in a tweet.
According to stock market experts, after expiry of three years lock-in, Yes Bank shareholding banks would look at the valuations as well. So much will depend upon the Q3FY23 results of Yes Bank. If Yes Bank manages to give strong numbers in Q3FY23 results, then valuations of the Yes Bank shares may become attractive and hence, private lenders who bought stake in Yes Bank may continue to hold the stock.
Suggesting Yes Bank shareholders to keep an eye on Q3FY23 results, Ravi Singhal, CEO at GCL Securities said, “Much will depend upon the Q3FY23 results of Yes Bank. If the private lender manages to give attractive numbers like other banks, then valuations of Yes Bank shares are expected to become highly attractive. As Yes Bank is still following provisioning post-Covid spread, this provisioning is also expected to go down like any other bank. So, a better quarterly result for October to December 2022 period may lead to rise in Yes Bank share price valuations and in that case private banks holding Yes Bank shares may not go for profit-booking as they have been assigned the responsibility of bringing Yes Bank amongst a profit making bank. A better quarterly result of Yes Bank is expected to create a new supply zone of Rs 40 to Rs 45 for institutional and retail investors.”
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