The shares of YES Bank tumbled 7.5 per cent with above average volume on Monday. This fall has broken through an important support band between ₹330 and ₹340. Investors with a short-term perspective can consider selling the stock at current levels. After encountering a key resistance at ₹395 in early December 2013, the stock resumed its intermediate-term downtrend. This downtrend has been in place from the May 2013 peak of ₹547.

Early this month, the stock decisively dipped below its 21- and 50-day moving averages and is hovering well below them. The short-term trend is also down. The relative strength index on the daily chart has entered the bearish zone backing the short-term downtrend. Both the daily and weekly price rate of change indicators are featuring in the negative territory indicating selling interest. The stock’s short-term outlook is bearish. It can extend its decline and reach the price target of ₹308 and then ₹302 in the ensuing trading sessions. Sell the stock while maintaining a stop-loss at ₹329.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

(This article was published on January 27, 2014)
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