YES Bank shares up 45% in one week; should you book profits? What analysts say

Shares of YES Bank Ltd surged at the opening tick on Friday but saw some profit booking at higher levels. The lender has been at the radar of investors amid the news flow in the lender and the stock more than doubling investors wealth in a span of three-months.

YES Bank shares rose 9.25 per cent on Friday to new 52-week high at Rs 32.81, with a total market capitalization close to Rs 95,000 crore. The stock, which had settled at Rs 30.03 on Thursday, dropped about 11 per cent from day's high to Rs 29.25. However, it recovered afterwards.

The scrip had surged about 135 per cent from its 52-week lows at Rs 14.10 hit in October 2023. The stock has surged about 45 per cent since Monday, when it closed at Rs 22.80. The stock is nearly 95 per cent up in the last six-month period.

Technical experts tracking the chart believe that the stock is headed for more upside once the current phase of consolidation around Rs 32 is over. They said that some profit booking was warranted in the counter after the secular rally in the few sessions.

Some experts believe that investors should book profit, partially or completely, while others suggest that traders with a longer time frame can hold the stock. A few suggest that aggressive investors can buy the dips in the lender amid the selling pressure.

YES Bank stock has seen a continued rally from Rs 19 to Rs 32 and given more than 50 per cent returns in a span of two weeks, said Ganesh Dongre, Senior Manager - Technical Research, Anand Rathi Shares and Stock Brokers. "At the current juncture, the stock is in the overbought zone, so traders can book some profit or hold with a stop loss of Rs 26," he said.

The present YES Bank is witnessing selling pressure over Rs 32 mark. However, the sustainability over the key hurdle of Rs 25 has triggered medium-term bullishness in the stock, said Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox. "The price action is headed towards Rs 37-40 levels once the next aggressive move overtakes the Rs 32 hurdle," he said.

"Until the support of the 50-simple moving average (SMA) is confined, the stock is anticipated to receive accumulation on healthy dips. While there is a negative divergence of relative strength index (RSI), the momentum continues to detain selling pressure, revealing an aggressive bullish set-up," he said.

YES has continued with the strong upward move from the support taken near the significant 50EMA level of Rs 22.60 zone and has achieved targets of Rs 32 levels where it has found resistance and is in consolidation, said Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher.

"With near-term support now placed at Rs 26.50 zone, a decisive breach above Rs 32 levels would once again trigger a fresh breakout and can anticipate further rise for targets of Rs 35 and Rs 41 levels. With the overall trend maintained strong, there is much expectation from this stock and keeping the stop loss of Rs 26.50 levels," he added, suggesting to hold the stock.

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.

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