Yes Bank shares rise after spurt in volume. Sell, Buy And Check?

Yes Bank shares experienced a significant surge during Friday’s trading session, reaching an intraday high of ₹17.60 per share, marking a steep 5.50 percent increase from its intraday low of ₹16.70 per share on the NSE. Moreover, trading volume for the private bank stock saw a substantial increase, rising by more than 3.24 times compared to previous sessions, as reported on the BSE website.

Market experts attribute the rise in Yes Bank’s share price to media reports indicating the resolution of a two-year-long dispute between media mogul Subhash Chandra and Yes Bank. These reports suggest that Subhash Chandra and JC Flowers Asset Reconstruction Company, the asset reconstruction arm of Yes Bank, have reached an agreement. In this deal, the asset reconstruction company has agreed to a significant reduction of around 75 percent in the outstanding debt, with Subhash Chandra now set to pay ₹1500 crore instead of the earlier ₹6500 crore. This news generated a buzz in the market, leading to heavy buying activity in Yes Bank shares during Friday’s trading session.

Avinash Gorakshkar, Head of Research at Profitmart Securities, commented on the surge in Yes Bank’s share volume, emphasizing that the heavy buying interest stemmed from the reports of Subhash Chandra and JC Flowers ARC resolving their long-standing debt repayment tussle. Notably, the reduced debt repayment of ₹1500 crore is expected to be paid in a lump sum.

Regarding the technical analysis of Yes Bank shares, Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, pointed out that the stock exhibited a bullish positive candle on the daily chart after a brief consolidation phase. This move was accompanied by crossing the significant 200-period Moving Average (MA), indicating an improved bias. The near-term target for Yes Bank shares is projected to be around ₹18.55, where resistance is expected. A decisive breakout could potentially open the path to further targets ranging from ₹21 to ₹22. The near-term support level is at approximately ₹16.70. Additionally, the Relative Strength Index (RSI) signaled a trend reversal, suggesting a buy opportunity with the potential for further upside movement in the coming days.

When asked about whether investors should consider buying Yes Bank shares, Avinash Gorakshkar advised waiting for an official statement before making investment decisions. However, he noted that if the reported news is accurate, it could also be positive for Zee Entertainment Enterprises Ltd (ZEEL) share price. This is because settling the outstanding debt with Yes Bank is crucial for the Zee-Sony merger.

In summary, Yes Bank’s shares experienced a significant boost on Friday due to reports of a resolution in the debt repayment dispute between Subhash Chandra and Yes Bank, which led to heavy buying activity. Technical analysis suggests a positive outlook for Yes Bank shares with potential resistance and support levels. Investors are advised to await an official statement, but this development may also impact the ZEEL share price positively.