In Monday’s trading session, YES Bank witnessed a significant pullback, breaking its four-day winning streak, with the stock plunging by 10.71% to reach a day low of Rs 28.01. This decline represents a 14.63% drop from its recent one-year high of Rs 32.81 achieved last Friday.
Both BSE and NSE have placed YES Bank’s securities under the short-term Additional Surveillance Measure (ASM) framework, indicating potential volatility in share prices and cautioning investors.
According to technical analysts, the recent rally in the stock suggests a possibility of profit booking. AR Ramachandran from Tips2trades notes that the YES Bank stock appears bearish and overbought on daily charts, with strong resistance at Rs 32.7. He advises investors to consider booking profits, as a daily close below the support of Rs 28 could lead to a decline to Rs 24 in the near term.
Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi Shares and Stock Brokers, suggests that due to the stock’s overbought status and having delivered over 50% returns in two weeks, traders may consider booking some profits. For those opting to hold, maintaining a strict stop loss at Rs 26 is recommended.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, highlights that the stock achieved an initial target of Rs 32, facing resistance at this level. He suggests a near-term support at Rs 26.50, and a decisive breach above Rs 32 could trigger a fresh breakout, potentially leading to further increases with targets at Rs 35 and Rs 41 levels.
Osho Krishan, Senior Research Analyst at Angel One, advises a pragmatic approach with a higher trailing support zone (stop loss) aligned with the stock movement.
As of the recent analysis, the stock is trading above various moving averages, and the 14-day relative strength index (RSI) is at 62.15. While the stock has a price-to-equity (P/E) ratio of 90.08, its price-to-book (P/B) value stands at 2.18.