What happened to Yes Bank:
Stock was trading at its all time high of around 404 on 20th Aug 2018 and since then it corrected up to 165 due to major reason of RBI actions, offloading of promoter’s stake & many more thereafter. I have captured some data to understand it.
- BANK IS FINDING A SUCCESSOR:
The bank has about three months to decide on the new leader as “The Reserve Bank of India has reaffirmed that a successor to Shri Rana Kapoor, MD & CEO, Yes Bank should be appointed by February 1, 2019,” the lender said in an exchange filing.
3. Brokerage Views:
Brokerages have their mixed views after the RBI action.
Debt instruments of Yes Bank Ltd. will be closely eyed by Care Ratings after the term of its Chief Executive Officer and Managing Director Rana Kapoor was cut short by the Reserve Bank of India.
The ratings assigned to various debt instruments of Yes Bank have been put on “credit watch with developing implications” on account of the RBI’s action, CARE Ratings said in a press release.
Fundamental Views :
At fundamental front there is no any major changes recently, it is looking ok in compression of leading banks such as HDfC, Kotak, Indusiand..etc. However we can analyse better on Q2 Result of FY2018 which is expected on 25th Oct 2018. There are Pros & Cons as stated below:
Its PE is looking attractive at current price.
CMP on 19th Oct 2018 = 217.90
In last month Sept 2018 stock tumbled up to 165 however it has closed above its major support of 180, which is 100 EDMA on monthly chart. It has bounced from its support but could not closed above its immediate resistance of 260 on daily chart. So technical chart is weak to trade.
(Note: Whenever price closes below its Support level or closes above its Resistance level then further move in that direction will accelerate. If it does not then it is advisable to accumulate near to support & book the profit near to resistance level.)
Conclusion( My Personal View) :
- All the negativity is factored in its current price, however short term trader should avoid this stock as volatility is high.
- Investor can accumulate this stock at lower levels periodically as I think stock can bounce once new management will come into play by Feb 2019.
- It has a Brand value in the Market.
- For trading one can refer above major support & resistance to take their positions accordingly.
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