Yes Bank (NSE: YESBANK) share price has been trading sideways since the start of May 2023. The shares are consolidating below a key level as the bulls appear to be exhausted after orchestrating a strong rebound from March lows. The latest analysis reveals that the time is running out for the bulls.
Yes Bank shares turned red on Friday after posting a green candle on Thursday. The stock of the Indian bank closed the week without any significant gain or loss. However, Nifty 50 and BSE Sensex, the benchmark indices of the Indian equities, remained positive in the final trading session of the week.
Recently, ICICI Securities has revised its outlook on the Yes Bank. The brokerage has downgraded the stock from ‘hold’ to ‘reduce’, considering its risk-reward ratio. The revised Yes Bank share price target after the downgrade is Rs 13.5. The reason behind this outlook is the concern over the company’s operating earnings profile.
In other news, the Yes Bank Q4 FY23 results showed a decrease of 45% in its net profit due to higher provisions and expenses. A 127% increase in the credit provisions on a YoY basis was the major reason behind this decrease in net profit.
Technical analysis of the NSE: YESBANK chart shows that the ₹16 support has now become a resistance. The stock has been consolidating below this level since the start of May 2023 but couldn’t break above it. Rejection from this level will make Yes Bank share price forecast bearish.
A breakdown below the upward trendline on the following chart may send the price₹14.75. This will be a 7.4% drop from the current price of ₹15.95. To avoid this bearish outlook. The shares need to gain strength above ₹16 resistance.
I’ll keep posting my updated analysis on Yes Bank shares in my free Telegram group, which you’re welcome to join.
This post was last modified on May 12, 2023, 12:31 BST 12:31