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- Yes Bank share price signals attempts to retest Rs 20 support after hitting six-week lows last week. Find out why it could struggle.
Yes Bank share price rise for the second successive session on Monday, propelled by news that it had recovered a substantial portion of its Non Performing Assets (NPA). The stock was up by 0.8% at the time of writing and traded at ₹19.91, raising hope of a potential reversal. The upturn is significant, coming two sessions after Yes Bank share price registered six-week lows.
Why Yes Bank Share Price Isn’t Out Of the Woods Yet
Yes Bank reported that it has recovered ₹201 crore worth of NPA, reducing the weight of bad assets on its books and improving the outlook for its medium-term performance. However, Yes Bank share price technical assessment signals an underlying weakness that could limit its near-term gains. As of press time, Yes Bank (BSE: YESBANK) trades below the Volume Weighted Moving Average (VWMA), currently at ₹20.95 on the daily time frame. In addition, the RSI is currently 45, affirming the near-term downward pressure.
Also there is a broader limitation on Net Interest Income (NII) for banks in India after the Reserve Bank of India (RBI) slashed interest rates by 50 basis points to 5.50% early this month. NII is the difference between the income earned from loans and interest paid on deposits.
Meanwhile, Yes Bank share price currently lacks the bullish undercurrent previously provided by its acquisition. Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is set to acquire 20% of the bank for about $1.58 billion, ending months of speculation on potential acquisition of a controlling stake.
Yes Bank Share Price Prediction
Yes Bank momentum calls for further upside above the pivot point at ₹19.48. That will likely result in further gains to encounter the first resistance at ₹19.98. However, an extended control by the buyers will break above that level and could test the second resistance level at ₹20.55.
On the other hand, going below ₹19.48 will favour the sellers to take control. That could see primary support established at ₹19.00. Breaking below that level will invalidate the upside narrative and could clear the path to test ₹18.58.
