YES Bank Ltd shares surged another 7% early in the morning on Tuesday, extending the private lender's gains. The stock has gained traction among Dalal Street traders due to strong and above-average trading volumes.
YES Bank shares gained more than 7% to Rs 21.70 during Tuesday's trading session, giving the company a total market valuation of close to Rs 62,500 crore. The stock has gained roughly 10% in the last two sessions and 12% in the last one week. YES Bank shares has increased by roughly 55% since its 52-week low of Rs 14.10 on October 23, 2023. The stock has increased by 30% in the last six months, but has been unchanged over the last year. On December 14, 2022, the stock reached a 52-week high of Rs 24.75.
YES Bank's operations have significantly improved in recent quarters, aided by increasing CASA and retail deposits. We expect the company's NIMs would hold up in the medium term despite industry compression, owing to its focus on granularization of advances, said Shreyansh Shah, Research Analyst at StoxBox.
"The capital infusion of around Rs. 6,000 crores in FY23 provided the bank with growth opportunities while protecting it from credit losses." It is worth noting that the bank's NPAs have stayed consistent in absolute terms, but it has been able to offset slippages through recoveries and upgradation of problematic accounts," he added, while staying upbeat about the bank's future ratios. According to the technical charts, analysts believe the stock will rise significantly in the next few days. They advise investors to hold existing long positions for more gains in the counter while maintaining a strong stop loss.
YES Bank has acquired some significant momentum in the recent month and is now trading at the Rs 20 mark. According to Jigar S Patel, Senior Manager - Technical Research, Anand Rathi Shares and Stock Brokers, "it recently took out its previous swing with huge volume and successfully sustained above it."
"The daily DMI and RSI indicators point to a bullish bias in the counter." Thus, on a daily close basis, one might buy in the Rs 20-21 region with a target of Rs 26 and a stop-loss of Rs 18.
YES Bank has recently recovered well from the bottom formed near Rs 15.70 zone and recently indicated a higher bottom formation pattern on the daily chart taking support near Rs 19-zone and with a decent pullback has given a breakout above 21.20 zone with decent volume participation witnessed, to improve the bias and sentiment, said Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher.
"Further ahead, the next target visible would be near Rs 24.50 zone of the previous peak level and with major support maintained near Rs 19 levels, one can carry on with the long position," he added.
