YES Bank shares rise in a weak market; can this upmove last?

Shares of YES Bank Ltd continued their upward move for a second consecutive session, closing 0.71 per cent higher at Rs 19.89 on Monday. This occurred despite a downtrend in domestic markets influenced by growing geopolitical tensions. Over the past two days, the stock has climbed 2.31 per cent.

Moody's recently upgraded YES Bank's rating from Ba3 to Ba2, with a revised 'stable' outlook. The Baseline Credit Assessment (BCA) also improved from b1 to ba3, reflecting strengthened credit fundamentals. This upgrade is seen as a positive indicator of the bank's financial health.

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 involves purchasing a 13.19 per cent stake from State Bank of India (SBI) for Rs 8,889 crore, along with a 6.81 per cent stake from a consortium of banks for Rs 4,594 crore, at a price of Rs 21.5 per share. The participating lenders in the consortium include Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.

Some analysts noted that the stock faces strong resistance in the Rs 21–21.50 range and only a decisive close above this zone could trigger fresh upward momentum.

Osho Krishan, Senior Analyst at Angel One, commented, "The counter has a strong support near 19.40-19 zone, which is likely to cushion upcoming blips. On the higher end, fresh momentum could be seen above 21-21.50 subzone only."

Kunal Kamble, Senior Technical Research Analyst at Bonanza, highlighted potential risks, stating, "YES Bank is indicating a prevailing negative trend. Although the stock recently gave a breakout above a falling trendline, it failed to sustain the move, with selling pressure dragging the price back toward the trendline." He cautioned against new entries until prices decisively rise above Rs 21.40, predicting potential downsides if prices fall below Rs 17.40.

Investors are advised to monitor market trends closely and await further signals from the bank's management and market analysts regarding future growth prospects.