Yes Bank rallies 11%, hits fresh 52-week high on rating upgrade

Care Ratings has revised the ratings for its infrastructure bonds worth Rs 5,000 crore a notch to ‘BBB+’ with a positive outlook, from ‘BBB’ with the same outlook earlier.

Its Lower Tier II Bonds and Tier II Bonds (Base III) too have received a similar upgrade from the agency, the lender said in a regulatory filing on BSE. The rating for Upper Tier II bonds has been revised to ‘BB+’ with a positive outlook.

Agencies

Shares of Yes Bank rallied about 11 per cent to Rs 16.25, its new 52-week high on Thursday. The scrip had settled at Rs 14.69 on Wednesday.

The private lender has been in demand among investors so far in the new financial year. The stock has rallied about 33 per cent so far in the month of April.

In a business update, the bank said its net advances grew by 8.8 per cent to Rs 181,508 crore for the fiscal ended March 31, 2022. The bank’s net advances were at Rs 166,893 crore in the previous fiscal ended March 2021.

However, technical analysts have a mixed opinion on the stock. Some analysts said that if the stock is able to take out Rs 15.20-15.50 levels, then it may see an up move towards Rs 16 or even Rs 20. Analysts largely see the support for stock at Rs 13.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the sharp move of this week has opened a chance of decisive upside breakout of the larger consolidation at the Rs 15.50 level, indicative of a downward sloping minor trend line.

“Technically, such sharp up moves post larger range movements indicate sharp upside ahead. Hence, a sustainable up move above Rs 15-50-16 levels could open a potential upside pattern target of around Rs 19.50- Rs 20 levels. We expect these upside targets to be achieved in the next 1 or 2 months. At reaching the highs, the stock price is expected to encounter strong resistance around Rs 20 and is likely to shift into a downward correction from the highs,” he said.