Yes Bank share price nosedived on Monday, losing 8.5 percent of its value to trade at Rs 23.54. It was a reflection of the wider Indian bank markets, with the Nifty Bank Index closing down by 2.4 percent. However, the Yes Bank share price hemorrhage was still substantially below the rest of the market, signaling a strong bearish undercurrent. In a single swipe, the share price has broken under a double-top pattern on the daily chart, providing strong evidence of a potential sustenance of the downtrend.
Indian stocks are reeling from their exposure to the US economy, thanks to the high number of Foreign Institutional Investors (FII) in the markets. There are murmurs that the US economy could be headed for a recession, following a series of soft economic data and a spike in the unemployment rate. That could have ripple effects across the world, and jeopardise the expected foreign acquisition of Yes Bank (NSE: YESBANK).
The momentum indicators on the 2h Yes Bank share price signals bearishness. The 20-EMA (Rs 25.10) has recently crossed below the 50-EMA (Rs 25.28), showing a likely continuation of the current downturn. Also, the price is well below those two marks, lending support to the bearish view. Meanwhile, the Relative Strength Index (RSI) is at 28, underlining control by the sellers.
On the chart below, Yes Bank share price looks likely to extend the decline if resistance remains at 24.00. That could see the establishment of the first support at 23.48, but further control by the sellers at that point could breach that mark and test 23.00. However, movement above 24.00 will favour the buyers to take control. That will likely propel the upside to encounter the first resistance at 24.56. Extended control by the buyers at that point will build a stronger momentum to break above that mark, invalidating the downside narrative and potentially advancing Yes Bank higher to test 25.00.
This post was last modified on %s = human-readable time difference 08:31