Yes Bank share price rises 15% in 3 days. Experts have this caution

According to stock market experts, Yes Bank share price may remain highly volatile as three years lock-in of ICICI Bank, Axis Bank, HDFC Bank, IDFC First Bank is ending on 13th March this month. They went on to add that these private lenders bought stake in Yes Bank at around ₹10 and it is now above ₹18, which means these private banks have a chance to book profit once the three year lock-in ends. However, some experts believe that these private banks won’t sell their Yes Bank shares immediately after the end of three year close-in as they would with for the fourth quarter results of Yes Bank.

On why Yes Bank share price is ascending, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Yes Bank share rally is completely speculative as there is no such change in fundamentals of the private bank. In fact, this rally in Yes Bank shares can be a good opportunity for those shareholders who bought Yes Bank stocks during its December 2022 rally after the private lender sold out 40 per cent of its stake in dish TV to JC Flowers.”

On why he is advising Yes Bank shareholders to exit in this rise, who entered in December rally, Avinash Gorakshkar said, “Three year lock-in of ICICI Bank, IDFC First Bank, Axis Bank, HDFC Bank, etc. is fast approaching and some profit-booking is expected from these banks as they have bought Yes Bank shares at around ₹10 apiece levels.”

However, Ravi Singhal, CEO at GCL Broking said that there might not be immediate profit booking by these private banks whose three year lock-in ends on 13th March 2023. Ravi Singhal said that much will depend upon the Q4FY23 results of the private lender. If it manages to report improvement in its NIMs, then these private banks may think of holding Yes Bank shares for more time.”

On Yes Bank share price chart, Sumeet Bagadia, Executive Director at Choice Broking said, “Yes Bank shares have immediate support placed at ₹16 whereas its major support is placed at ₹15 apiece levels. Those who have this stock in their portfolio are advised to hold the stock further and upgrade their trailing stop loss to ₹16 as Yes Bank shares may become highly bullish if it breaches ₹20 apiece levels.”

However, Sumeet Bagadia advised fresh investors to wait and buy Yes Bank stocks above ₹20 levels for the target of ₹24 in short term.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.