Comments
We recommend a sell in the stock of YES Bank from a short-term perspective. It is evident from the charts of the stock that following a medium-term uptrend from its September 2012 low at Rs 322 until February 2013 peak of Rs 539, the stock changed direction. This trend reversal was triggered by negative divergence in daily relative strength index and moving average convergence divergence indicator. The stock is currently in a short-term downtrend. Last week, it decisively breached its uptrendline as well as 21-day moving average.
On Thursday, the stock tumbled 4 per cent accompanied by above average volume conclusively breaking through a key support at around Rs 500 and also its 50-day moving average. With this fall, the daily RSI has entered the bearish zone from the neutral region and weekly RSI is on the brink of entering the neutral region from the bullish zone.
The daily MACD is slopping down in line with the stock price and weekly indicator is hovering in the overbought levels signalling a further correction in the stock price. We are bearish on the stock from a short-term perspective. We expect its decline to continue and reach our price target of Rs 470 or Rs 464 in the forthcoming trading sessions. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 493 levels.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.