YES Bank shares jump 6% to hit new 52-wk high, mcap tops Rs 75,000 cr: Key levels to watch

January 17,2024

Shares of YES Bank Ltd surged during the early trading session on Tuesday as the private lender continued to extend its gains to hit a new 52-week high during the session. The stock has been in an upward momentum lately, thanks to the renewed interest of traders.

Before giving up its gains partially, YES Bank shares surged about 6.15 per cent during Tuesday session to Rs 26.25, commanding a total market capitalization of more than Rs 75,000 crore. The private lender settled at Rs 24.73 in the previous trading session on Monday.

Analysts tracking the stock see more upside in the stock in the coming days, but see the stock in overbought territory based on the technical parameters. Most of them suggest investors to hold the stock with a stop loss of around Rs 22-23 levels and see further upside to Rs 30 or even Rs 40-mark.

YES Bank has picked up in the last 2 months gaining from Rs 15.80 zone with recently having two instance of higher lows formation pattern on the daily chart has improved the bias and further rise is anticipated with a decisive breach above Rs 23 zone confirmed as of now, said Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher.

"The next targets visible are Rs 34 and Rs 40 levels with strength sustaining but at the same time, from current levels, only a decisive breach below 22 zone shall weaken the bias and can anticipate further slide," she added.

At the current juncture, the stock has already given sharp returns in the last three months, said Ganesh Dongre, Senior Manager - Technical Research, Anand Rathi Shares and Stock Brokers.

"On the daily chart, stock has still formed a bullish engulfing pattern, but at the same time, stock is in an overbought zone. We will advise investors to hold this stock at the current price level of Rs 26 with a stop loss of Rs 23 for the target price of Rs 29," he added.

Shares of YES Bank have surged more than 85 per cent from its 52-week low at Rs 14.10 hit on October 23, 2023. The stock has rallied 50 per cent in the last six months, while it is up 15 per cent in the year 2024 so far. The stock has advanced 30 per cent in the last one year.

YES Bank has claimed a new 52-week high on Tuesday, steering fresh upside in the direction of Rs 28- 30 levels. The underlying trend has taken a robust momentum, with buying pressure possessing the ability to overcome any major hurdle, said Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox.

"Until the stock holds Rs 23, its support mark, the bias to observe upside momentum on every health corrective wave. The medium-term outlook has turned upbeat with price action pointing to higher levels in the coming months," he said. "The daily chart indicates the resilient ability of stock to experience buying in the overbought category of Relative Strength Index."

The stock is making a higher top, higher bottom formation, which is a sign of strength. At present, there is no proper risk-to-reward ratio at the current levels, said Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets. "Those already holding the stock can trail the stop loss to Rs 23. On the upside, the stock will likely touch Rs 28-31 in a couple of weeks."

Earlier this month, YES Bank shared its Q3 business updates, where in it reported a YoY increase of 11.9 per cent in loans and advances in the December 2023 quarter, reaching Rs 2,17,662 crore, compared to Rs 1,94,573 crore in the same quarter of the previous year. On a quarter-on-quarter (QoQ) basis, the loans and advances rose by 4.1% from Rs 2,09,106 crore.

Deposits for the quarter increased by 13.2 per cent YoY and 3.2 per cent QoQ, reaching Rs 2,41,831 crore compared to Rs 2,13,608 crore in Q3FY23 and Rs 2,34,360 crore in Q2FY24. The credit-to-deposit ratio decreased to 90 per cent as of December 31, 2023, compared to 91.1 per cent a year ago and 89.2 per cent in the September 2023 quarter.