Yes bank - A Traders Delight

 Yes Bank - A Traders Delight.

Yes Bank fell from 20 levels to 12 during the last 1 month mainly for the reason that the FPO shares got listed which were issued around INR 12.

This is most volatile with huge volumes as retail investors are betting big on it. While it is getting support around 14 it faces huge resistance at 16+

If you are a trader buy on declines and sell once you see a profit of 10% and re-enter at lower levels.

Assuming a retail investor enters at 14 there are 3 possible scenarios

a. The price will further fall to 12

b. The price spikes up to 16+

c. The price stagnates with a 1 rupee range.

Assuming you are holding 10k shares you can buy and sell quickly on a daily basis and earn 1 re difference.

For 21 Aug 20 let us analyze the high and low rate it had hit a high of 16.10 and a low of 15.30 giving a 0.80 p margin which means an earning of 8k per day.

BEST CASE SCENARIO :

You can make 8–10k if you are smart and quick in taking the trades

WORST CASE SCENARIO :

You need to be patiently wait for the spike if you buy high and scrip hits Lower Circuit to 12 levels.

Raghav
Equty Research Analyst

Smart Investor (@smartinvestor) | Twitter

https://ingeniousinvestor.blogspot.com/

Say "Yes" to this Bank !!

Company Background

YES BANK Limited is a private sector bank. The Bank is engaged in providing banking services, including corporate and institutional banking, financial markets, investment banking, corporate finance, branch banking, business and transaction banking, and wealth management. The Company's segments include Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations. 

Its Treasury segment includes investments and financial markets activities undertaken on behalf of the Bank's customers, trading, maintenance of reserve requirements and resource mobilization. The Corporate/Wholesale Banking includes lending, deposit taking and other services offered to corporate customers. The Retail Banking includes lending, deposit taking and other services offered to retail customers. 

The Other Banking Operations segment includes para banking activities, such as third party product distribution and merchant banking, among others.

Stock Performance :

During the last one month the scrip has given a decent 8% return jumping from 1530 to current 1650 levels which incidentally is 52 week high.


In the last one year the scrip has given a growth from the lows of Rs.1010 to high of Rs.1650 level giving a whopping 65% return. Scrip has seen sharp corrections from high levels and is likely to slide further.

Recommendation :
Buy on declines of around Rs.1300 and hold for a target price of Rs.1800 holding period of 12 months


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