YES Bank rallies 23% in 4 days; what technical chart says


NEW DELHI: YES Bank shares surged nearly 17 per cent on Wednesday, taking their 4-day rally to 23.4 per cent. Technical analysts are however mixed on the stock prospects.

While some believe the stock needs to take out Rs 15.20-15.50 levels soon, before seeing any further upside, others said a move towards Rs 16 or even Rs 20 is likely. Analysts largely see downside support at Rs 13 level.

Milan Vaishnav, founder at Gemstone Equity Research & Advisory Services, said the stock has been trading in a range of Rs 12-15 since October 2021 and that it is moving above all of its key moving averages.

He does not see risk-reward favourable as the recent rise has not been triggered by any technical indicator. Besides, he finds no support until Rs 13.30 level. For now, the analyst sees resistance for the stock at Rs 15.20 level.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the sharp upmove of this week had opened a chance of decisive upside breakout of the larger consolidation at the Rs 15.50 level, indicative of a downward sloping minor trend line.

“Technically, such sharp up moves post larger range movements indicate sharp upside ahead. Hence, a sustainable upmove above Rs 15-50-16 levels could open a potential upside pattern target of around Rs 19.50- Rs 20 levels. We expect these upside targets to be achieved in the next 1 or 2 months. At reaching the highs, the stock price is expected to encounter strong resistance around Rs 20 and is likely to shift into a downward correction from the highs,” he said.

On the daily chart, according to Nilesh Jain of Centrum Broking, YES Bank has given a fresh breakout from its falling trend line with higher than average volumes. He noted that the stock has surpassed all short-term and long-term moving averages and the momentum indicators and oscillators have also given a fresh crossover on the daily chart.

The scrip, in fact, took out a major neckline of Rs 14.8 and “opened up doors for Rs 16-18 levels,” he said. Jain sees immediate support is at Rs 13, which he said should be the stop loss of all the long positions.

On Wednesday, YES Bank closed at Rs 15.20, up 16.92 per cent.

Rupak De of LKP Securities said the day’s rally was backed by a decent rise in volumes.

“Besides, the stock has given a symmetrical triangle breakout on the daily chart. The weekly RSI is in positive crossover. The trend has now become positive, on the higher end, it can move up towards 20 and higher whereas a closing below 13.90 may negate the current bullish trend,” he said.

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