Shares

Yes Bank Share Price Extends Gains, Focus Still On Acquisition

Published by
Written By: Michael Abadha
Share
    Summary:
  • Yes Bank share price has built a stable upward momentum, but a move past the Rs 25.00 mark will likely prove elusive in the near term.

Yes Bank share price was up by 0.3 percent in the afternoon trading session on Tuesday, trading at Rs 24.53. The private lender’s stock has been rising for the last two trading sessions, but the uncertainty surrounding its proposed acquisition continues to weigh it down. The share price has failed to touch the Rs 25.00 mark in all but three trading sessions since the beginning of August, underlining the grip held by the sellers.

Reuters reported last week that State Bank of India (SBI) intends to offload its $2.2 billion worth of equity in Yes Bank (NSE: YESBANK) by March 2025. The protracted sale of the 24% stake has recently gained impetus, with local publication, The Mint, reporting that Akihiro Fukutome, the CEO of Japan’s Mitsui Banking Corp would be in Japan this week to spearhead the negotiations. Dubai’s Emirates NBD bank is also pursuing the acquisition.

Momentum indicators

On the 2-hour chart, the Yes Bank share price momentum is neutral-to-bullish. The 20-SMA has just intersected with each other at the Rs 24.32 mark. However, the current price id above both levels, signaling that the buyers currently have the upper hand. Also, the Relative Strength Index (RSI) reads 54, adding support to the upside view.

Support and resistance levels

On the chart below, the Yes Bank share price RSI favours control by the buyers above the pivot mark at 24.40. With the buyers in control, look for the first resistance at 24.60. However, a stronger hold by the bulls could breach that level, clearing the way to test 24.80. Alternatively, moving below 24.35 will signal a shift in the momentum to the downside. In that case, look for the first support at 24.20. However, if the sellers extend their control, it could strengthen the downward momentum to breach that level. That could effectively invalidate the upside narrative and potentially result in further declines to test 24.00.

This post was last modified on Aug 20, 2024, 10:47 BST 10:47

Written By: Michael Abadha

Michael is a self-taught financial markets analyst, who specializes in analysis of equities, forex and crypto markets. He draws his inspiration from the fact that markets provide an interface through which the world interacts in search of a better tomorrow.

Published by
Written By: Michael Abadha