YES Bank shares nearly double from 52-week low of Rs 14.10 in October 2023, up over 23% in two sessions.
YES Bank Ltd shares continued their upward momentum on Wednesday after HDFC Bank Ltd acquired a stake in the company. YES Bank disclosed in an exchange filing that the Reserve Bank of India (RBI) had granted approval to HDFC Bank to purchase up to 9.5% of YES Bank's stake on Monday.
YES Bank shares surged over 10% on Wednesday, reaching a new 52-week high of Rs 28 per share during the session, pushing its total market capitalization past the Rs 80,000 crore mark. The stock had closed at Rs 25.42 in the previous trading session on Tuesday. The bank is on the verge of doubling its value in less than four months.
YES Bank shares have surged approximately 99% from their 52-week low of Rs 14.10 reached in October 2023. The private lender saw a gain of over 23% in just two trading sessions. Over the past year, the stock has surged about 67%, and in the year 2024 so far, it has risen by 25%.
In an exchange filing, YES Bank stated that the RBI, while granting approval for HDFC Bank's stake acquisition, has set a condition that if HDFC Bank fails to acquire a significant shareholding within one year from the date of the RBI letter, the approval will be canceled.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, commented that HDFC Bank's additional stake acquisition in YES Bank is largely positive for the latter in the long term, providing stability. However, the performance of YES Bank in light of this stake acquisition needs observation.
The filing also mentions that the applicant (HDFC Bank) must ensure that its aggregate holding in YES Bank does not exceed 9.50% of the paid-up share capital or voting rights at any time. If the aggregate holding falls below 5%, prior approval from the RBI will be required to increase it.
According to Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox, the stock is indicating a reversal nearing the key support of Rs 22.55, its 50-day simple moving average (SMA). A decisive breakout over Rs 26 is expected to propel the price action towards Rs 30 to Rs 33 levels.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, noted that YES Bank has witnessed a decent rally from Rs 16 levels with a series of higher lows forming on the daily chart. The stock has taken support near the significant 50-day exponential moving average (EMA) level of Rs 22.60, indicating a bullish bias and a potential rise to the initial target of Rs 27, with further strength potentially leading to Rs 32. The near-term support level is expected to be at Rs 22.60.
Please note: Business Today offers stock market news solely for informational purposes and should not be considered as investment advice. It is advisable for readers to seek guidance from a certified financial advisor before making any investment decisions.
