Yes Bank share price rose on Monday, ending its loss taking in the last two trading sessions. The share price was up by 2.8 percent at the time of writing, trading at Rs 24.62-the highest in the last seven days. This week could be potentially defining for Yes Bank (NSE: YESBANK), with new developments potentially coming from the long-awaited stake acquisition by a foreign investor.
A section of Indian press reported that Sumitomi Mitsui Banking Corporation (SMBC) CEO, Akihiro Fukutome, will travel to India this week to initiate negotiations for potential takeover by the Japanese lender of State Bank of India’s 23.99% stake in Yes Bank. The Reserve Bank of India (RBI) reportedly approved the acquisition of up to 51 percent of the bank, and this could inject new momentum into the share price in the near term. The private lender has been seeking new investment for the last four years, and the delayed conclusion of the deal has been partly responsible for the drag in its market performance.
On the 2-hour chart, the Yes Bank share price is above the Volume Weighted Moving Average (VWMA), which currently corresponds to 23.93. Therefore, the upside momentum will likely continue if the price stays above that mark. Also, the Moving Average Convergence Divergence (MACD) line is above the indicator line, affirming control by the buyers.
The 30-minute chart signals control by the buyers above the 24.27 pivot mark. The momentum will likely encounter the first barrier at 24.65, but extended control by the buyers could break above that mark and potentially test 25.00. Alternatively, the sellers could take control if the price breaks below 24.27. In that case, the first support could come at 24.00. However, if the sellers extend their control, the resulting momentum could breach that support, at which point the upside narrative will be invalid. Also, it could lead to further declines to potentially test 23.70.
This post was last modified on Aug 12, 2024, 12:08 BST 12:08