YES Bank shares trading at 10-month high; right time to book profit?  

Shares of private sector lender YES Bank are trading at a ten-month high, with investors wondering how long can the rally last and whether is this the right time to book profit? The stock, which closed at Rs 20.65 on January 10 this year ended at Rs 20.35 in Wednesday's session, sending the stock to the highest in ten months. Since January 19, shares of YES Bank had remained below the Rs 20 mark on a closing basis. On Wednesday, the stock managed to close above the Rs 20 mark for the first time from mid-January levels.

It breached the resistance of Rs 19-Rs 20 level, which technical analysts had said was needed to trigger a rally on the YES Bank counter. The stock ended 4.95% higher at Rs 20.35 on Wednesday against the previous close of Rs 19.39 on BSE.

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In the current session, YES Bank stock was trading flat at Rs 20.27 on BSE. Stock of YES Bank has gained 19 per cent in a year but lost 6 per cent in 2023. In two weeks, the stock has gained 26 per cent. Market cap of the bank stood at Rs 58,293 crore in Thursday's trading session. YES Bank has a one-year beta of 0.4, indicating low volatility during the period.

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In terms of technicals, the relative strength index (RSI) of the YES Bank stock stands at 83.7, signaling the stock is trading in the overbought zone. YES Bank shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.

Analysts were of the view that the stock closing above the key resistance level and trading at a ten month high was likely to see more upside in the near term.

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Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "After making a higher bottom formation, it has given a good move on the upside and also given a range breakout after a long consolidation between Rs 14 and Rs 19 zones, with strong volume-wise participation in recent days. On the weekly chart, the stock is forming a golden crossover near Rs 17 levels and a decisive move above Rs 22. The stock will go till Rs 25 levels and then scale to the new target of around Rs 40. The RSI is on the rise and well-placed, indicating strength, with further immense upside potential visible."

Deven Mehata, Equity Research Analyst at Choice Broking said, "The stock benefits from a robust support zone within the range of Rs 16.75 - Rs 17 levels, closely aligned with key moving averages (20, 50, and 200 Day EMA). This convergence enhances the stock's stability and reinforces its potential for an upward movement. Presently, the stock is trading above all the mentioned important moving averages, signalling strength in its current trend."

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"The Relative Strength Index (RSI), a momentum indicator, has rebounded to around 72.4 levels, indicating a recent surge in positive momentum. A minor resistance is noted near Rs 20.50 levels. If the stock successfully surpasses this resistance, it may advance towards the next resistance level at Rs 22.40. This potential upward movement provides an opportunity for investors. For those holding the stock from lower levels, booking partial profits at the current market price is a prudent strategy. Additionally, trailing stop loss orders can be implemented to protect gains and allow for further upside potential," added Mehata.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "YES Bank has been hovering in the range of Rs 15.20-18.50 for quite some time and requires a decisive breakthrough to come out of the slumber phase. Technically, the stock is placed near the resistance zone and needs to have a cautious view in the coming period."

AR Ramachandran from Tips2trades said, "YES Bank is bullish but also overbought on the daily charts with next resistance at Rs 20. Short-term traders & investors should be booking profits at current levels as a daily close below support of Rs 18.45 could lead to a target of Rs 15.8 in the near term. Whereas a daily close above resistance of 20 could lead to an extended target of 22.6 in the near term."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "The stock has gained some quick momentum. As we advance, there will be massive resistance near Rs 19 and credible support is seen around Rs 16. On the flip side, if YES Bank share closes above Rs 19, then the doors will be open for Rs 21-22 levels in the coming few weeks."

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.