The next Monday. As of 10.30 am, 3.34 crore shares of YES Bank were traded on the BSE for Rs 61 crore, while 39.04 crore shares for Rs 714.55 crore were moved on the National Stock Exchange (NSE).
YES Bank stock increased 9% on Monday, bringing its two-day gain to 13%
On Monday, YES Bank shares continued to rise and increased by 9% in the early trading session amid brisk trading activity and news coverage of the private lender. In the past two trading sessions, the stock has increased by more than 13%.
On Monday, Yes Bank’s shares increased by almost 9% to Rs 18.83 before partially reversing course, giving it a market valuation of more than Rs 53,000 crore. The stock increased by around 3% on Friday to close at Rs 17.34. In the previous two trading sessions, the stock rose 13%.
Investors holding the troubled lender in their portfolios are perplexed as to whether the worst is behind them or whether there are still more snags ahead for the company. Market players advise investors to think carefully before making any snap decisions and look at the lender’s financial performance.
According to Kranthi Bathini, Equity strategist at WealthMills Securities, it is too early to tell if the worst is gone, but the resolution of a debt dispute bodes well for the private lender. As a result, “buying interest in the counter has increased, and sentimental optimism has grown,” he said.
Before reaching any final conclusions, it is necessary to examine the lender’s financial performance. Bathini elaborated. Only if YES Bank can enhance its asset quality and return ratios over the course of the quarters, and if this improvement is reflected in its financial health, can the stock perform miracles.
JC Flowers Asset Reconstruction Company (ARC), the asset reconstruction arm of YES Bank, and media magnate Subhash Chandra have struck an agreement to pay a Rs 6,500 crore debt. The accord calls for JC Flowers to accept a 75% decrease in the loan, requiring Chandra to return JC Flowers Rs 1,500 crore.
According to sources, Subhash Chandra was able to reclaim control of the family’s investment in businesses such as Dish TV, Zed Learn, and three homes, including a central Delhi bungalow, with this payment. According to the sources, the conditions of the settlement call for a 15% payment within the first 30 days, with the remainder amount spread out over the next six months.
Previously, JC Flowers ARC got assets from YES Bank at a reduced cost as part of the bank’s transfer of a non-performing assets (NPA) portfolio of Rs 48,000 crore to the ARC in December 2022 for little more than Rs 11,183 crore. Last month, Essel Group subsidiary Zed Learn indicated its desire to address concerns with JC Flowers ARC.
However, technical analysts anticipate that the lender will continue to make gains as volumes remain strong. Next Monday. 3.34 crore YES Bank shares worth 61 crore rupees were exchanged as of 10:30 a.m. on the BSE, while 39.04 crore shares worth 714.55 crore rupees were moved on the National Stock Exchange (NSE).
According to Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher, YES Bank has suggested a bullish positive candle on the daily chart after a short consolidation phase, pushing beyond the crucial 200 period MA to increase the bias and further gain may be predicted.
The chart indicates that “the next target would be around Rs 21-22 levels, which is where there is resistance in the near term.” The degree of immediate support is 16.70. The RSI has shown a trend reversal, signaling a buy with the possibility of more upward movement in the days ahead. she explained.
On a daily basis, YES Bank had a consolidation breakthrough of Rs 18.45 levels with high volumes. The daily chart is unfolded with accurate breakout, resistance, and goal levels after a retracement from the highs of 24.75 levels to the lows of 14.40 levels. According to Sujit Deodhar, Head Technical Analyst at Wellworth Share & Stock Broking, the level of 18.35 was serving as a barrier on the charts, and the stock has finally surpassed it.
The 161.80% retracement level is represented by Rs 31 levels, which is the next point of resistance. So traders should purchase this stock at current levels of Rs 18.50, where it gives the highest risk-reward ratio, with a protective stop loss put below Rs 16 levels,” he added.