Yes Bank shares rise after spurt in volume. Buy, sell or wait?

According to stock market experts, Yes Bank share price ascended on Friday after the media reports about the end of two year long tussle between media mogul Subhash Chanda and Yes Bank. They said that some sections of media have reported that Subhash Chanda and JC Flowers Asset Reconstruction Company — the asset reconstruction arm of Yes Bank, have sealed a deal in which Subhas Chandra will repay the outstanding debt to the asset restructure company (ARC). In this deal, the ARC has take a cut of near 75 per cent and now Subhash Chanda would pay ₹1500 crore instead of ₹6500 crore. They said that market went buzz after this report and heavy buying was witnessed in Yes Bank shares during Friday session.

Speaking on the reason for spurt in volume of Yes Bank shares, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Yes Bank shares witnessed heavy buying interest on Friday after some media reports about Subhash Chanda and JC Flower ARC ending near two year tussle of debt repayment. These reports say that Yes Bank’s asset restructuring arm has taken a cut to the tune of 75 per cent and now Subhash Chandra would pay ₹1500 crore instead of ₹6500 crore. But, this ₹1500 crore would be paid in one time.”

On technical of Yes Bank shares, Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher said, “Yes Bank share has indicated a bullish positive candle on the daily chart after a short span of consolidation phase moving past the significant 200 period MA to improve the bias and further rise can be anticipated. The near term target would be around ₹18.55 levels where there is a resistance and further ahead with decisive breakout would open the gates for next target of ₹21 to ₹22 levels. The near term support is maintained at around ₹16.70 zone. The RSI has indicated a trend reversal to signal a buy and has further upside potential movement in the coming days.”

ZEEL share price in focus as well

On whether one should buy Yes Bank shares or not, Avinash Gorakshkar said that stock market investors should wait for an official statement before making any investment decision. However, he said that if the news is true then it is good news for the ZEEL share price as well because it is important for the Zee Entertainment Enterprises Ltd to settle the Yes Bank outstanding debt before Zee-Sony merger.

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.

Updated: 02 Sep 2023, 08:21 AM IST