Stocks to Watch – Yes Bank share – price up 12% on NSE; Is this pull back or trend reversal? Should you buy? Analyst suggests this!

Stocks in News – Yes Bank – Private Sector bank Yes Bank Limited shares were trading with a positive bias on Tuesday. The Yes Bank share price saw a pullback. The prices were up by over 12 per cent on the NSE at 12:45 pm and were trading at Rs 12.45. What does this suggest and how should the investors and traders see this price movement? Nilesh Jain, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking has some useful tips.  

Jain said that this price appreciation has been after a continuous fall in the share price. The stock has been oversold. 

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The intraday high for this stock is Rs 12.85 while the intraday low is Rs 11.05. On Monday, it settled at Rs 11.10. The stock was also trading with high volumes with over 49.53 cr shares being traded around this time. The traded value was just under Rs 600 cr. The total market cap was over RS 31,193 cr.  

However, Jain said that this upside should be seen as a pullback and still not a trend reversal. Any trend reversal can be assumed at levels above Rs 14. 

The existing shareholders of Yes Bank stocks should continue holding the stock at least till the levels around Rs 13.50, Jain further said. He advises against making any fresh positions in this stock. Any fresh position in this stock should be made only when the stock price of Rs 14. 

He puts the stop loss at Rs 11. He said that once the stock breaches levels around Rs 14, there will be an upside open for levels between Rs 16-18.   

The 52-week high of this stock is Rs 20.75 which it attained on 11 December 2021 while the 52-week low for this stock is Rs 10.85 which it hit on 23 August 2021.      

Jain’s recommendations are based on the technical analysis of the stock and not based on the fundamentals of the banks.   

Over the last 5 trading sessions, including today, the stock has been moving in a positive territory.  

As for BSE, Yes Bank stocks were trading at Rs 12.28, up by almost 11 per cent around this time.