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We recommend a buy in Yes Bank stock from a shortterm trading perspective. It is evident from the charts of Yes Bank that it was in a medium-term downtrend from its early September peak of Rs 149 to its 52-week low of Rs 55 recorded in late October.

During this downtrend, the stock broke through the significant support level at 100 in early October. However, the stock took support at its 52-week low (Rs 55) twice in late November and early December and reversed direction.

The stock has a significant long-term support level in the band between Rs 55 and Rs 62. On December 4, the stock jumped by 11 per cent, penetrating its medium-term down trendline. We notice above average volume over the past three trading sessions, strengthening the new uptrend. The weekly relative strength index (RSI) is displaying positive divergence and daily RSI is rising in the neutral region.

We are bullish on the stock from a short-term perspective. We expect the ongoing up move of the stock to prolong until it hits our price target of Rs 77 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stoploss at Rs 63.50.

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