Shares of YES Bank Ltd witnessed a significant surge during the early trading hours on Tuesday, reaching a new 52-week high and attaining a market capitalization exceeding Rs 75,000 crore. The stock's recent upward trajectory is attributed to a renewed interest among traders. Despite a partial pullback, YES Bank shares experienced a surge of approximately 6.15% during Tuesday's session, reaching Rs 26.25, after closing at Rs 24.73 in the previous trading session on Monday.
Financial analysts closely monitoring the stock foresee further upside potential in the coming days, although they also observe that the stock has entered overbought territory based on technical parameters. Suggestions for investors include holding the stock with a stop loss in the range of Rs 22-23 levels, with anticipated upside targets ranging from Rs 30 to even Rs 40.
Over the last two months, YES Bank has demonstrated an upward trend, starting from the Rs 15.80 zone. The formation of two instances of higher lows on the daily chart has improved the overall bias, and an additional rise is expected with a decisive breach above the Rs 23 zone. According to Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher, the next visible targets are Rs 34 and Rs 40 levels, with a potential weakening of the bias only upon a decisive breach below the Rs 22 zone.
Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi Shares and Stock Brokers, notes that while the stock has formed a bullish engulfing pattern on the daily chart, it is also in an overbought zone. Investors are advised to hold the stock at the current price level of Rs 26 with a stop loss at Rs 23, targeting a price of Rs 29.
The surge in YES Bank shares has seen an impressive 85% increase from its 52-week low of Rs 14.10 recorded on October 23, 2023. Over the last six months, the stock has rallied by 50%, with a 15% increase in the year 2024 so far and a notable 30% gain in the last one year.
As of Tuesday, YES Bank achieved a new 52-week high, indicating a fresh upside potential towards the Rs 28-30 levels. The stock's underlying trend exhibits robust momentum, with buying pressure capable of overcoming major hurdles. Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox, suggests that as long as the stock holds the support mark at Rs 23, the bias remains inclined towards observing upside momentum, portraying a positive medium-term outlook with indications pointing to higher levels in the coming months.
Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets, emphasizes the stock's higher top and higher bottom formation as a sign of strength. Currently lacking a proper risk-to-reward ratio at current levels, those holding the stock can consider trailing the stop loss to Rs 23. On the upside, the stock is likely to touch Rs 28-31 in the next couple of weeks.
In its Q3 business updates earlier this month, YES Bank reported a YoY increase of 11.9% in loans and advances for the December 2023 quarter, reaching Rs 2,17,662 crore. Deposits increased by 13.2% YoY and 3.2% QoQ, reaching Rs 2,41,831 crore. The credit-to-deposit ratio decreased to 90% as of December 31, 2023, compared to 91.1% a year ago and 89.2% in the September 2023 quarter.
