Shares of private lender YES Bank extended their losing run for the seventh straight session on Thursday. The stock fell 3.12 per cent to settle at Rs 14.89 over its previous close of Rs 15.37. At today’s closing level of Rs 14.89, the counter has lost 11.84 per cent in seven consecutive days.
Around 384.34 lakh shares changed hands today on BSE, which was higher than the two-week average volume of 376.66 lakh shares. Turnover on the counter stood at Rs 57.60 crore, commanding a market capitalisation (m-cap) of Rs 42,815.61 crore.
Support on the counter could be seen at Rs 14.40 level, an analyst said, while a few suggested that it may further decline towards the Rs 12 level.
“At current valuation, one should wait and watch. No fresh longs are advised on the counter as of now,” said AK Prabhakar, Head of Research, IDBI Capital Markets.
YES Bank is trading below all key daily exponential moving averages and thus hinting at a negative bias for coming sessions, said Jigar S Patel – Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers. “At the current juncture, Rs 14.40 would be a crucial level and a close below it will drag the counter to the Rs 13.50 zone. As of now, fresh longs are not recommended,” Patel stated.
“The outlook of YES bank is still gloomy amid the challenges the bank is facing. Since the beginning of 2023, shares of the private lender have fallen significantly in anticipation of the end of the lock-in period,” Ravi Singh, Vice-President and Head of Research at Share India. The stock may show some lower levels of buying. However, investors should take this opportunity to exit the stock as there may be more corrections in the coming weeks which may push the counter further to the Rs 12 level, Singh added.
“YES Bank looks bearish on the daily charts with strong resistance at Rs 16.30. A daily close below the support of Rs 14.40 could lead to a lower target of Rs 12 in the near term,” said AR Ramachandran from Tips2trades.
Kotak Institutional Equities has assigned a ‘Sell’ rating for YES Bank.
A three-year lock-in period that barred investors from selling YES Bank stock they had acquired as part of the lender’s restructuring has ended. Reserve Bank of India (RBI) had mandated YES Bank’s shareholders, which includes the State Bank of India (SBI) and other private lenders, to hold on to 75 per cent of the shares acquired as part of the restructuring in March 2020.
SBI — YES Bank’s biggest shareholder with a 26.14 per cent stake in the private lender as of December 2022, as per exchange data, — and others had acquired the bank’s shares for Rs 10 apiece.
Meanwhile, Indian equity benchmarks traded almost flat in late deals today as weakness in metals and technology stocks countered gains in consumer and pharma shares.
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