YES Bank has recently been a point of focus for many investors. The private lender’s shares have seen a significant decline, falling 27.40% from their 52-week high of Rs 32.81, which was recorded earlier this year on February 9. Despite this drop, the stock has experienced an overall upward trend, rising 48.13% over the past year. On Friday, the shares edged up slightly by 0.04%, settling at Rs 23.82.
The trading volume for YES Bank shares on the BSE was around 1.50 crore shares, which is notably lower than the two-week average volume of 2.87 crore shares. This decrease in trading volume may indicate a reduced level of investor activity or interest in the stock. The turnover on the counter stood at Rs 35.76 crore, with the stock commanding a market capitalization of Rs 74,634.07 crore.
From a technical analysis perspective, the stock’s performance offers mixed signals. Analysts have identified key support and resistance levels that investors should watch closely. The immediate support is at Rs 23, with resistance levels at Rs 24.65, followed by Rs 26 and Rs 27. Notably, some analysts suggest that the stock appears weak on daily charts and could potentially slip towards the Rs 20 zone.
Osho Krishan (Senior Research Analyst at Angel One) noted that YES Bank has returned to its consolidation zone on the daily charts. According to him, the stock is currently trading within a broad range of Rs 21-27, and only a decisive breakthrough could dictate the next leg of the trend. This implies that the stock could continue to trade within this range until there is a significant move either upwards or downwards.
Jigar S Patel (Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers) echoed similar sentiments. He mentioned that the support level is at Rs 23, while the resistance is at Rs 24.65. He added that a decisive close above the Rs 24.65 level could trigger a further upside towards Rs 26, suggesting that the stock could potentially rise if it manages to break through this resistance.
Ravi Singh (Senior Vice-President (Retail Research) at Religare Broking) pointed out that the stock does not look promising on the charts. He warned that the stock could slip towards the Rs 20 level in the near term, with resistance pegged at Rs 26. This bearish outlook highlights the cautious sentiment among some market watchers.
Examining the moving averages, YES Bank’s stock is trading above its 5-day, 10-day, 20-day, 30-day, 150-day, and 200-day SMAs. However, it is trading below its 50-day 100-day SMAs, indicating a mixed performance. The stock’s 14-day RSI stands at 54.14, which is considered neutral.
In terms of valuation, YES Bank’s stock has a price-to-earnings (P/E) ratio of 59.63, which might suggest that the stock is overvalued compared to its earnings. The price-to-book (P/B) value is 1.77, indicating a reasonable price relative to its book value. The earnings per share (EPS) is 0.40, with a return on equity of 2.97%, reflecting modest profitability.
YES Bank’s stock is at a critical juncture. While it has shown significant growth over the past year, the recent decline and mixed technical indicators suggest that investors should approach with caution. The key levels to watch are the support at Rs 23 and the resistance at Rs 24.65, as any significant movement beyond these levels could determine the stock’s next direction. For now, the stock remains in a wait-and-watch mode, with market participants closely monitoring for any decisive trends.
