YES Bank shares surge 27% in 4-day rally. Rs 25 level looks likely in 3-5 months, suggests technical charts

Shares of YES Bank have potential to hit Rs 25 level in the medium term, suggest technical charts. The scrip has been rising for four consecutive days now and took out the Rs 22 level in Tuesday’s opening trade. After showing a range bound action with positive bias in the last one month, the stock price recently witnessed a decisive upside breakout.

On Tuesday, the scrip rose 5 per cent to hit a fresh 52-week high of Rs 22.10 apiece. With this, the scrip is up 27 per cent in four days.

Nagaraj Shetti, Technical Research Analyst at HDFC Securities said the stock price, as per weekly timeframe chart, is indicating a formation of significant bottom reversal pattern like rounding bottom and is currently witnessing an upside breakout of the rounding bottoming pattern.

The sharp upside breakout of down sloping multi-month trend line resistance, he said, has been unfolded on the monthly timeframe, he said..

“The volume has started to expand during upside breakout in the stock price and the weekly and monthly 14-period RSI are showing positive indication. 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,” Shetti said.

Pravesh Gour, Senior Technical Analyst, Swastika Investmart  noted that YES Bank stock is trading above most moving averages and that the momentum indicator Relative strength index (RSI) is also positively poised. MACD (moving average convergence divergence), on the other hand, is supporting the current strength, he said.

This analysts expects the stock to hit Rs 24 level in the near term. On the lower side, Rs 17.50 is the strong support during any correction, he said.

Osho Krishan, Senior Analyst for Technical & Derivative Research at Angel One said the support has shifted upward towards Rs 18-18.50 levels. This analyst expects the northward rally on the counter to continue in a gradual form.

The stock has been in news recently after the RBI gave an conditional approval to proposed investments by CA Basque Investments and Verventa Holdings. The central bank gave approval to each investor with respect to the proposed acquisition by each of them of up to 9.99 per cent of paid up share capital of the bank through subscription to equity shares and share warrants of the bank.

Also Read: Rs 17 or Rs 24, where are YES Bank shares headed after taking out Rs 21 level?