Yes Bank (NSE: YESBANK) share price has experienced a sharp sell-off in the last week. The bearish price action can be attributed to the recently released Q1FY24 results. Despite a 10% rise in net profits in the June quarter, the shares of the Indian banking giant failed to catch a bid.
In my last analysis, I gave a price target of Rs 19 for Yes Bank stock. The target was perfectly met as the shares soared to Rs 18.45 last week. After a rejection, the shares had a 6.09% pullback and have been trading sideways since then. There is a significant decrease in volatility this week. On Thursday, the share closed at the same level as a day earlier. Technical analysis suggests a big move could be on the cards.
The financial report for the quarter ending on June 2023 was recently released by Yes Bank on 21 July. The earnings report showed a decrease in the provision of bad loans and an increase in the net profit of the bank. The net profit remained at Rs 343 crores in Q1FY24.
This was a 10% increase from the net profit of Rs 311 crores in the same period last year. However, the positive results for the first quarter of FY24 were not enough for the Yes Bank share price to break above the March 2023 high. The shares have also broken below a major support level on the daily chart.
The latest analysis of NSE: YESBANK reveals that the share has plunged below its Rs 17.30 support level. If the stock fails to reclaim this level soon, I expect more downside in the coming days. In such a case, Rs 16.10 seems to be a valid price target for the bears.
On a daily timeframe, Yes Bank share price forecast is still not looking very bearish. This is because the price is yet to make a lower low on the daily chart. The shares are currently changing hands at Rs 17, which is a minor support level. A breakdown below this level would take the price toward a retest of Rs 16.10 level.
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This post was last modified on %s = human-readable time difference 13:38