YES Bank (₹45.5): Sell

BL Research Bureau

The stock of YES Bank, after a substantial downtrend, attempted to recover at the beginning of October. The stock rallied from its 52-week low of ₹29 to ₹78.7. It then started to consolidate between ₹62 and ₹75 for a period of one month. But the stock could not regain the bullish momentum, and the prolonged consolidation began to weigh on it. As a result, the price broke below the lower boundary of the range at ₹62 in the first week of December. This resulted in more selling pressure dragging the stock lower.

Currently trading at ₹45.5, the stock of YES Bank is facing stiff resistance at ₹48.3. Also, the 21-day moving average is about to slip below the 50-day moving average – a bearish indication. Adding to it, the Moving Average Convergence Divergence (MACD) indicator is in the negative territory indicating the prevailing weakness in the stock. So, unless the stock closes above ₹48.3 on a daily basis, the outlook will remain negative. Hence, traders can sell the stock with stop loss at ₹48.5 and the potential target at ₹38.

Supports: ₹38 and ₹29

Resistances: ₹48.3 and ₹53.5