YES Bank shares dive 12% in four sessions; is stock back in corrective phase?

YES Bank shares dive 12% in four sessions; is stock back in corrective phase?

Shares of YES Bank Ltd on Wednesday continued their downward trend for the fourth straight session. The stock slipped 3.98 per cent to settle at Rs 25.54 in last trade. It has fallen 11.96 per cent in four trading days. The scrip has fallen 22.15 per cent from its one-year high price of Rs 32.81, a level seen earlier this month on February 9. Despite the mentioned drop, it has gained 81.14 per cent from its 52-week low value of Rs 14.10 per share, hit on October 23, 2023.

The private lender recently saw a couple of bulk deals. US-based Carlyle Group entity, CA Basque Investments, has sold 39 crore YES Bank shares, or 1.35 per cent stake, at an average price of Rs 27.10 per share, BSE bulk deal data showed. The Carlyle firm held a 6.43 per cent stake in YES Bank, as of December 31, 2023. The figure has now reduced to 5.08 per cent.

That said, Morgan Stanley Asia (Singapore) PTE has bought around 30.63 crore shares at Rs 27.10 a piece, BSE data stated.

Technical analysts largely remained ‘bearish’ on YES Bank shares for the near term.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, “The stock has witnessed a decent correction from its peak level. It has seen heavy profit booking. Immediate support will be near Rs 24.60 and next major support is lying near Rs 22.”

AR Ramachandran from Tips2trades said, “YES Bank stock price looks bearish on daily charts with strong resistance at Rs 27.35. A daily close below support of Rs 23 could lead to a downward target of Rs 20 in the near term.”

DRS Finvest founder Ravi Singh said, “At present, YES Bank’s stock is in a corrective phase. It looked weak on daily charts and may slip towards Rs 20 level.”

The counter traded lower than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but higher than the 50-day, 100-, 150-day and 200-day SMAs.

The scrip’s 14-day relative strength index (RSI) came at 47.22. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 73.34 against a price-to-book (P/B) value of 1.77. YES Bank has a one-year beta of 0.8, indicating low volatility.

Earnings per share (EPS) came at 0.35 with a return on equity (RoE) of 2.42.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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