YES Bank shares gain for second session; will this positive trend hold?

Shares of Yes Bank Ltd rose for the second consecutive session on Monday, ending 0.79 per cent higher at Rs 20.35, even as domestic benchmark indices declined after a four-day winning streak.

Recently, Moody's upgraded the private lender's rating from Ba3 to Ba2 with a revised 'stable' outlook. The bank's Baseline Credit Assessment (BCA) was also raised from b1 to ba3, reflecting an improvement in its credit profile and overall financial health.

In a major development, Japan's Sumitomo Mitsui Banking Corp (SMBC) signed a definitive agreement last month to acquire a 20 per cent stake in YES Bank for Rs 13,483 crore.

The deal includes the purchase of a 13.19 per cent stake from State Bank of India (SBI) for Rs 8,889 crore and a 6.81 per cent stake from a consortium of lenders for Rs 4,594 crore, at a price of Rs 21.5 per share. The consortium comprises Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.

A market expert advises that high-risk investors can consider holding YES Bank. The stock has strong support in the Rs 19.20–19.60 range, while a decisive breakout above Rs 23.40 could signal bullish momentum. However, a drop below Rs 17.40 may lead to further downside.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, advised that high-risk investors can continue holding YES Bank, citing the stake acquisition by a Japanese firm and a positive outlook for the banking sector.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted strong support for the stock around Rs 19.20–19.60, with potential upward momentum above Rs 21–21.50.

Drumil Vithlani, Technical Research Analyst at Bonanza, underlined that a decisive close above Rs 23.40 is needed for a bullish trend, while a drop below Rs 17.40 could lead to a further decline toward Rs 15.98.