YES Bank shares in focus today; here are the three possible reasons
YES Bank shares: Traders will be looking if YES Bank will be able to maintain its Thursday’s upward momentum. The stock had settled 12 per cent higher at Rs 23.43 on Thursday.
Shares of YES Bank Ltd will be on the radar of investors on the back of three key reasons. The private lenders have been struggling to keep the momentum going amid the carnage in the mid and smallcap counters. However, a mix of newsflow has put it again under the spotlight.
YES Bank has received approval on March 14, 2024 (Thursday) from the National Payments Corporation of India (NPCI) to act as merchant acquiring bank for existing & new UPI merchants for One 97 Communications, the parent entity of fintech player Paytm, said the lender in an exchange filing on Thursday.
YES Bank has received an approved for enabling transition of Paytm UPI App (owned by One 97 Communication) – UPI consumer application and UPI collection for offline merchant acquiring via One 97 Communications and online merchants via Paytm Payment Service (PPSL), which were previously managed by Paytm Payments Bank (PPBL), it added.
In a separate exchange filing to the bourses, YES Bank gave clarification sought by exchanges, on news articles suggesting that the lender was seeking a new promoter at a valuation of $9 billion. However, the lender denied to comment on the reports, citing them to be speculative in nature. “There are no material events which are required to be disclosed,” said YES Bank.
Thirdly, traders will be looking if YES Bank will be able to maintain its Thursday’s upward momentum. The stock had settled 12 per cent higher at Rs 23.43 on Thursday, after a sharp correction of more than 36 per cent from its 52-week high levels at Rs 32.81, hit on February 9, 2024.
According to the media reports, YES Bank, the sixth-largest private bank, was planning to sell up to 51 per cent of its stake for a target valuation of $9 billion, up from its current market capitalisation. As per the reports, Citigroup’s India unit has been enlisted to facilitate the search for a potential buyer. However, Business Today could not verify the information independently.
Trigger for Yes Bank share price
On trigger that fueled buying in Yes Bank shares, Sandeep Pandey, Founder of Basav Capital said, “Yes Bank shares are rising due to a speculative buzz as there are news reports about Yes Bank looking to sell up to 51 percent stake to a new promoter. However, the private bank is yet to make any official statement on this Yes Bank news. I would like to suggest that such rumor should not be a criteria to take any position in the stock.”
The former Deputy Vice President of HDFC Bank went on to add that Yes Bank shares were in an oversold zone as it had crashed around 40 percent from its 52-week high that it had touched in the first fortnight of February 2024. He said that people sitting on cash might have looked at Yes Bank shares as a value pick after such a slide in nearly one month.
Yes Bank share price target
Advising positional investors to avoid taking any fresh position in Yes Bank shares, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi said, “Yes Bank shares are still looking weak on chart pattern and it is still signaling like a sell-on rise stock on the chart pattern. So, those who have Yes Bank shares in their stock portfolio, are advised to maintain strict stop loss below ₹18. Yes Bank share price is facing a hurdle at ₹26 apiece level.”
The Anand Rathi expert said that one should buy Yes Bank shares only in the ₹16 to ₹18 range maintaining strict stop loss at ₹14. On breaching ₹26 hurdle, Yes Bank shares may come close to its existing 52-week high of ₹32.85 apiece level.
With Thanks Reference to: https://www.businesstoday.in/markets/company-stock/story/yes-bank-shares-in-focus-today-here-are-the-three-possible-reasons-421545-2024-03-15 and https://www.livemint.com/market/stock-market-news/why-is-yes-bank-share-price-skyrocketing-today-explained-11710401704973.html
