In a recent trading session, YES Bank shares witnessed a significant intraday jump of 4.75%, reaching Rs 21.15 from the previous day’s closing value of Rs 20.19 on the BSE. The bank’s market capitalization also saw an uptick, reaching Rs 59,616 crore, reflecting a noteworthy 25% surge over the past two weeks. However, YES Bank shares are currently situated in the overbought zone, with a Relative Strength Index (RSI) of 80, signaling strong buying interest and the potential for an impending price correction.
Despite the recent rally, the stock has incurred a 4.53% decline for the year, prompting speculation about additional buying interest that could potentially reverse this trend. The one-year beta of 0.3 suggests a period of low volatility.
Technical analysts are observing that YES Bank shares are trading above various moving averages, including the 5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day averages. The breach of the resistance level at Rs 19–Rs 20 is seen as a triggering factor for a potential rally, with analysts predicting a target of Rs 40 if the current momentum persists.
Shiju Koothupalakkal, a Technical Research Analyst at Prabhudas Lilladher, highlights a higher bottom formation and a range breakout after a period of consolidation, underscoring the potential for further upside. Koothupalakkal anticipates the stock reaching Rs 25 and subsequently setting a new target of around Rs 40, pointing to a rising RSI as an indicator of strength.
Deven Mehata, an Equity Research Analyst at Choice Broking, emphasizes the stock’s stability, supported by a robust zone between Rs 16.75 and Rs 17, aligning with key moving averages. Mehata suggests that investors holding the stock from lower levels consider booking partial profits and implement trailing stop loss orders to safeguard gains.
In contrast, AR Ramachandran from Tips2trades adopts a cautious stance, noting that while YES Bank is bullish, it is also overbought on daily charts. Short-term traders and investors are advised to book profits at current levels, as a daily close below the support of Rs 18.45 could lead to a near-term target of Rs 15.8. Conversely, a daily close above the resistance of Rs 20 could extend the target to Rs 22.6 in the near term.
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