Shares of YES Bank Ltd surged more than 7 per cent during the trading session on Tuesday. The stock jumped 7.34 per cent to Rs 20.62 during the session, commanding a total market capitalization slightly below Rs 65,000 crore. The stock had settled at Rs 19.21 in the previous trading session on Monday.
Shares of YES Bank have tumbled nearly 38 per cent from its 52-week high at Rs 32.81, hit in February 2024. The stock has corrected nearly 20 per cent in the last three months but technical analysts believe that the recent sharp price surge may suggest that passive buyers are becoming more active, attempting to gain an advantage over reluctant sellers.
YES Bank is showing potential signs of recovery as the banking stock demonstrates resilience against further downturns. The recent price action has confirmed a bullish breakout from a double-bottom pattern on the hourly charts, indicating a possible trend reversal, said Kushal Gandhi, Technical Analyst at StoxBox.
This would affirm the double bottom pattern observed on the daily timeframe. The RSI on the daily chart is displaying a positive trajectory from oversold conditions, suggesting an increase in bullish momentum. From a medium-term perspective, we recommend purchasing shares of Yes Bank, targeting a price of Rs 22, while maintaining a stop loss at Rs 19.20, he said.
According to the data from BSE, more than 2.01 crore shares of YES Bank Ltd exchanged hands on Tuesday as of 1.30 pm. The total traded volume turnover in the lender stood slightly above Rs 40.5 crore. The traded volume on Tuesday is much higher than its two-week average.
Jigar S Patel, Technical Research Analyst at Anand Rathi Shares and Stock Brokers said that YES Bank's support will be at Rs 19 and resistance Rs 21.3. "A decisive move above the Rs 21.3 level may trigger a further upside of Rs 23.3. The expected trading range will be between Rs 19 Rs 23.3 for the short-term," he said.
On a fundamental basis, JM Financial said that the bank expects to gradually increase RoAs from current 0.5 per cent to 1 per cent by focusing on improving margins by changing asset mix while simultaneously running down corporate book, and organically meeting PSL targets so as to prevent RIDF drag on margins. It has a 'sell' rating on the counter.
Following the crisis period, YES Bank has made significant improvements across various parameters, completely weeding out low-rated, high-yielding corporate lending, said Kotak Institutional Equities. "Ratings have improved notably from a previous low of D back to A+, reflecting the bank’s effective recovery and rehabilitation efforts," it said.