- The sentiment around Yes Bank share price has not been helped by rumours of a move by a private equity investor to offload 3% stake.
Yes Bank share price downturn extended on Friday, with the stock recording its third successive loss-making session at ₹18.60 and down by 1.69% at market close. That saw it end the week down by 5.68%, with its year-to-date returns at -5.2%. The decline has seen it drop below its 5,20,50 and 100 moving average levels on the daily chart, underlining strong bearish conditions.
Investors have moved on from the 20% stake acquisition by Japan’s SMBC Bank and are now concerned over the weak performance in key areas such as loan growth and deposit mobilisation. In addition, the bank’s board has been discussing new capital raising via equity, convertible equity and debt, and some investors view this as a dilution threat. These factors will likely keep Yes Bank share price under pressure in the near-to-medium term.
The sentiment around Yes Bank (BSE: YESBANK) has not been helped by rumours of a move by a private equity investor to offload 3% stake held in the bank via a block deal. These are deals conducted off-market through special windows provided by stock market regulators to cushion stocks from wild swings. While the news remains nothing more than rumours, it has sent a bearish signal in the market, with some investors perceiving it as a sign of a prolonged struggle.
Yes Bank Share Price Prediction
The momentum on Yes Bank share price favours the downside to continue if action stays below ₹18.66. With the sellers in control, the downward momentum will likely find initial support at ₹18.50. Breaking below that level will signal a stronger momentum that could push the stock lower to test ₹18.30.
On the other hand, action above ₹18.66 will shift the momentum to the upside. In that case, the stock will likely meet initial resistance at ₹18.90. Breaking above that level will invalidate the downside narrative. Also, the resulting momentum could result in further gains to test ₹19.10 in extension.
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