Shares of Yes Bank have corrected over 39 per cent from its 52-week low of Rs 24.75, hit on December 14, 2022. The stock was in focus after the private lender announced its operational performance for the quarter that ended on March 31, 2023.
YES Bank's total loans and advances increased to Rs 2,01,523 crore in the March 2023 quarter, registering an increase of 5.2 per cent on a quarter-on-quarter (QoQ) basis from Rs 1,91,542 crore in the December 2022 quarter and a rise of 14 per cent on a year-on-year (YoY) basis from Rs 1,81,052 crore in the March 2022 quarter.
What's next?
"YES Bank is in a secular downtrend, hovering below its major EMAs on the daily chart. Technically, the stock is looking weak, having immediate support around the 14-14.50 zone. While resistance could be seen around the 200 SMA, placed around the 16.50 odd zone," said Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One Ltd.
According to Sujit Deodhar, Head Technical Analyst at Wellworth Share & Stock Broking, the quarterly charts have been consolidating for the past 12 quarters in the mother candle of March 2020. It can be observed that the stock has a major support placed Rs 8 level and a strong resistance at Rs 46 level.
"During this consolidation phase, the stock witnessed a huge volume buildup, which can be interpreted as an accumulation at lower levels. Technical indicator MACD is still in sell mode but could see a positive crossover if the stock remains steady at current levels for a few more quarters," he said.
Long term structure for this stock still remains subdued but there could be some price action from the trading perspective as the stock will be completing 13 quarters of consolidation by June end. Stop loss for this trade to be placed below Rs 5.50 level," Deodhar added.
YES Bank's three-year mandatory lock-in period expired on March 13, 2023, which resulted in a heavy influx of stock supply. In March 2020, the Reserve Bank of India (RBI) superseded YES Bank’s board due to the bank’s issues with deteriorating asset quality, inadequate capital and losses on its books.
Notably, mutual funds bought 11.55 lakh additional YES Bank shares in February, ahead of the end of the three-year lock-in expiry, data compiled by PRIME Database showed.
Also, AMFI will review its semi-annual index categorisation in the first week of July and Nuvama Institutional Equities believes that YES Bank stock has a chance to move into the large-cap category.
Also read: AMFI rejig: YES Bank, JSPL may enter largecap category; Nykaa, Zomato may slip to midcap list