YES Bank witnessed a rise of approximately 6.15% during the Tuesday session, reaching Rs 26.25, resulting in a total market capitalization surpassing Rs 75,000 crore.
In the early trading hours on Tuesday, YES Bank Ltd’s shares experienced a surge, hitting a new 52-week high and extending its recent upward trend, driven by heightened trader interest.
Despite a partial retreat from its peak, YES Bank shares rose by around 6.15% during Tuesday’s session, closing at Rs 26.25 and achieving a total market capitalization exceeding Rs 75,000 crore. In the preceding trading session on Monday, the private lender settled at Rs 24.73.
Analysts monitoring the stock anticipate further upward movement, though they also observe that it is currently overbought based on technical indicators. Recommendations include advising investors to maintain the stock with a stop loss around Rs 22-23 levels, projecting potential upside to Rs 30 or even Rs 40.
Over the last two months, YES Bank has displayed an upward trend, starting from the Rs 15.80 zone. Notably, the formation of two instances of higher lows on the daily chart has strengthened the bias, and further ascent is expected, providing a decisive breach above Rs 23.
As per Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher, the next visible targets are Rs 34 and Rs 40 levels, with a decisive breach below Rs 22 weakening the bias and potentially leading to further decline.
Ganesh Dongre, Senior Manager – Technical Research, Anand Rathi Shares and Stock Brokers, suggests holding the stock at the current price level of Rs 26 with a stop loss of Rs 23 for a target price of Rs 29, acknowledging the overbought condition.
YES Bank shares have surged by over 85% from its 52-week low of Rs 14.10 in October 2023. The stock has seen a 50% rally in the last six months and a 15% increase in 2024. Over the last one year, it has advanced by 30%.
Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox, anticipates fresh upside toward Rs 28-30 levels, emphasizing the robust momentum and the ability to overcome hurdles.
Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets, notes that the higher top and bottom formation indicates strength. However, the current levels do not present a favourable risk-to-reward ratio, and those holding the stock can consider trailing the stop loss to Rs 23.
In its Q3 business updates, YES Bank reported a YoY increase of 11.9% in loans and advances in the December 2023 quarter, reaching Rs 2,17,662 crore. Deposits for the quarter increased by 13.2% YoY and 3.2% QoQ, reaching Rs 2,41,831 crore. The credit-to-deposit ratio decreased to 90% as of December 31, 2023, compared to 91.1% a year ago and 89.2% in the September 2023 quarter. For more info, keep an eye on the IncBasil Website.