Shares of Yes Bank fell sharply on Friday, in line with an overall weakness in banking stocks. The stock plunged 6.24 per cent to hit an intraday low of Rs 21.05 compared to the previous close of Rs 22.45. The scrip eventually settled 5.57 per cent lower at Rs 21.20 today. A total of 4.94 crore shares changed hands on BSE, amounting to a turnover of Rs 106.21 crore. The lender’s market capitalisation or m-cap stood at Rs 53,119.93 crore.
At today’s closing level of Rs 21.20, Yes Bank has gained 75.06 per cent compared to its March low of Rs 12.11. The stock has climbed 6.53 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has gained 50.68 per cent.
Analysts largely felt that the stock is ‘overbought’ and investors could look to book profits and current levels. One analyst said that Yes Bank has support near 18-18.50 levels, while another suggested a near term target of Rs 25.
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Osho Krishan, Sr. Analyst- Technical & Derivative Research, Angel One, said, “Yes Bank has given a long-awaited breakout above the Rs 19.50-20 zone. On the technical front, the support base has shifted upward towards Rs 18-18.50 levels, and one may expect the northward rally to continue in a gradual form. The next resistance is placed around Rs 24-odd levels, followed by a Rs 30-odd zone.”
Pavitraa Shetty from Tips2trades, said, “A strong uptick in India’s credit cycle has fuelled an excellent rally in Nifty Bank, including Yes Bank stock hitting a 52-week high recently. Investors should book profits at current levels as stock is overbought and wait for lower levels of Rs 16.4-17 to buy for higher targets of Rs 25-27.5 in the near term.”
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said, “The medium-term uptrend in Yes Bank is likely to continue and the next upside targets to be watched around Rs 25 and the next Rs 31, which could be achieved in the next 3-5 months. Any downward correction till Rs 19.50 could be a buy on dips opportunity for the near term.”
Earlier this week, the lender said that private equity (PE) majors Carlyle Group and Advent have picked up 9.99 per cent stake in the bank. The two private equity (PE) funds together would invest Rs 8,896 crore in YES Bank with full conversion of warrants into equity.
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Meanwhile, Indian equity benchmarks slumped today, dragged by banking stocks. Sub-indexes Nifty PSU Bank, Nifty Bank and Nifty Private Bank declined 2.92 per cent, 0.64 per cent and 0.61 per cent, respectively.