YES Bank shares climbed 4% today; will this upward move sustain?

Shares of private lender YES Bank Ltd on Tuesday rose 3.57 per cent to settle at Rs 25.84 on NSE. At this price, the stock has gained 14.08 per cent in 2024 so far and 52.45 per cent in the past one year.

The lender delivered highest quarterly profits since the reconstruction, at Rs 502 crore, which is up 46.7 per cent YoY (year-on-year) and 11.2 per cent sequentially, Prashant Kumar, MD and CEO at YES Bank, said in a recent earnings call.

YES Bank's balance sheet registered a YoY growth of 14.6 per cent and CD (Credit-Deposit) ratio stood at 86.6 per cent against 85.5 per cent in the previous quarter, Kumar also mentioned.

The bank has been showing improvements in results over the last two quarters, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. "Also, the stake sale buzz by State Bank of India (SBI) in YES Bank is helping the stock to stay in the positive territory. Investors with high-risk appetite can add this for a medium- to long-term period," Bathini mentioned.

"For now, intermediate support is placed around Rs 24, followed by the Rs 22.50-22.80 zone. On the higher end, the Rs 27-28 range remains a daunting task and a sustainable breakthrough could only trigger the next leg of rally towards Rs 31-32 levels in the comparable period," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"The stock can hit an upside target of Rs 28 in the near term. Keep stop loss placed at Rs 24," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 56.47. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The lender's stock has a price-to-equity (P/E) ratio of 55.39 against a price-to-book (P/B) value of 1.85. Earnings per share (EPS) stood at 0.45 with a return on equity of (RoE) 3.35.