YES Bank, as per the weekly timeframe chart, is indicating a formation of a significant bottom reversal pattern like rounding bottom and is currently witnessing an upside breakout of the rounding bottoming pattern.
Lately, YES Bank joined the list of Elite members of the Top 100 most valued listed companies in the terms of market capitalization as their stocks of the lenders zoomed 27% in the past 3 days after the Reserve Bank of India (RBI) gave nod to raise capital from funds affiliated to international private equity shareholders Carlyle and Advent International. As per the reports, the scrip has been rising for 4 consecutive days now and took out Rs 23 apiece in Tuesday’s trade. Furthermore, the stock traded at its highest level since July 2020.
The BSE data showed that, With a market capitalization of Rs 57,380 crore, YES Bank stood at 92nd place in the overall market-capitalization scale. In the meantime, on the banking sector order, YES Bank stood in 12th rank.
“We are here to inform you that the bank is now in receipt of two further letters (separate to each investor) from the RBI concerning the suggested investment,” the YES Bank declared.
Following this, the bank will directly encounter shareholders for the fulfillment of the suggested capital raise, which is subject to different regulatory submissions and conditions which are precedent as per the agreements of investment.
What Experts Say?
“If you are happy thinking about YES Bank and all the things that are happening with them, always remember that the 3-year lock-in for 75% of the pre-drama shares expires in March 2023, 3 months from now. Tons of liquidity coming, and this information will be all over the area at the end of Feb,” Deepak Shenoy, CEO of Capital Mind clarified in his tweet.
Pravesh Gour, Senior Technical Analyst, Swastika Investment stated that the YES Bank stocks are trading beyond most of the moving averages and that the momentum indicator Relative Strength Index (RSI) is also entirely self-assured. On the other hand, Moving Average Convergence Divergence (MACD) is also supporting the current power, he added.
“The volume has started to grow because of the breakout in the stock price and as explained by the momentum indicator RSI, the favorable signs are there. The mid-term trend in YES Bank is probably persisting and the next target would be around Rs 25 and then Rs 31, which will be accomplishing in the upcoming 3-5 months,” Nagaraj Shetti, Technical Research Analyst in HDFC Securities said.
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