Technical chart patterns suggest that the rally may not be over yet and it could well stretch towards Rs 32-49-70 in the next 6-12 months in line with traction seen in the banking space.
The stock rose over 15% in a month and more than 50% in the last 6 months which helped the stock to hit fresh 52-week highs in December.
The private sector bank hit a 52-week high of Rs 24.75 on 14 December 2022 but witnessed some profit booking post that is largely in line with broader market conditions.
Traders who missed the rally can look at buying the stock now or on dips towards Rs 18-20, for a possible target towards 49-70 in the next 6-12 months.
Most technical indicators suggest that the upside remains intact for Yes Bank.
On the price front, the stock price is trading below the 5 and 10-DMA while it is still trading above 20,30,50,100 and 200-DMA.
The Relative Strength Index (RSI) is at 54.4. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal Line, this is a bullish indicator.
The stock price started its fall from Rs 404 (August 2018). The stock breached Keltner channels on downside and made a low of Rs 5.55 in March 2020.
The stock recovered and made a high of Rs 20.83 (December 2020). Thereafter, the stock traded in the range of (Rs 10-18) from March 2021 to November 2022.
“Yes Bank stock price gave a Keltner channel breakout and made a high of Rs 24.75. The channels have also started trending upward,” Bharat Gala, President – Technical Research,
Securities, said.
Keltner Channels is a trend-following indicator used to identify reversals with channel breakouts and channel direction.
“The KST, Demand Index & Aroon Up/Down indicator suggest a possible firm uptrend. The possible target is Rs 32-49-70,” recommends Gala.
“If the stock price corrects downwards the buy levels are (Rs 20-18). A stop loss to be observed in the trade is Rs 16,” added Gala.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
