Jaipur, India, Circa 2020 - A mobile logged into the yes bank mobile application infront of the yes bank board. The background board is brightly lit. The screen shows the mobile application logging in.
Yes Bank (NSE: YESBANK) share price appears to be retesting its March high once again. On Thursday, the stock of the Indian banking giant is changing hands at ₹18.55, up 3% till press time.
The Indian equities have been experiencing some bullish sentiment since last week. The Nifty50, which is a benchmark of performance of the top 50 Indian companies, is up by 2.5% since the start of September. The SENSEX is also gaining momentum and is up 2.2% from last month’s low.
Analysts attribute the recent rally in the Yes Bank stock to the recent truce between JC Flower and Subahs Chandra. JC Flower ARC has accepted a 75 percent reduction on the Rs 6,500 crore loan. As a result, Subhash Chandra will be paying Rs 1,500 crore instead of Rs 6,500 crore.
In July, Yes Bank reported a net profit of INR 3.47 billion in the fiscal first quarter, against INR 3.14 billion a year ago. The Indian lender also announced ₹64.45 billion in interest earnings, as compared to ₹51.35 billion last year. The Yes Bank share price is currently trading 29% above its yearly low.
The chart for NSE: YESBANK shows the price attempting a breakout above the Rs 18.55 resistance level. The chart also shows the price has fully retraced the 9% correction that it faced after the Q1 earnings report. A deeper look at the chart reveals the price forming an ascending triangle pattern. The technical target for the pattern will be ₹23.9, which is 30% above the current price level.
If the price breaks above the ₹18.55 resistance level, there is a strong chance of it filling the ₹18.6-₹19.65 gap which was created in January. However, the Yes Bank stock price forecast will flip bearish if the ₹18.55 resistance level holds and the price faces another rejection. In this case, a correction of 7% towards ₹17.3 will be on the cards.
I’ll keep posting my updated YESBANK analysis and my personal trade setups on Twitter, where you are welcome to follow me.
This post was last modified on Sep 07, 2023, 15:48 BST 15:48