Yes Bank shares are likely to get a lot of attention when the Indian stock market opens again on Wednesday after the Holi 2023 holiday. On March 6, 2023, the three-year lock-in period for State Bank of India (SBI) exposure to Yes Bank ended. Dalal Street watchers expect SBI to sell some shares soon. Also, on March 13, 2023, banks like Axis Bank, ICICI Bank, IDFC First Bank, HDFC Bank, Kotak Mahindra Bank, etc. will no longer be able to sell their shares for three years. So, the market thinks that these banks will also take some profits. So, there is likely to be more pressure to sell Yes Bank shares in the coming days.
Experts in the stock market say that Yes Bank shares have strong support at 15 each, and that any drop between 15.50 and 16 per share should be seen as a chance for positional investors to buy, since these banks might sell all of their Yes Bank shares right away after the end of the lock-in period. They went on to say that the Yes Bank share price might go down because of rumours that these banks would cut their stakes, but that positional investors should keep their stop loss at 15 and keep buying on every big drop for a long-term goal of 20 to 22 per share.
Avinash Gorakshkar, Head of Research at Profitmart Securities, said this about the future of the price of Yes Bank shares: “SBI and other banks bought shares of Yes Bank to help it get out of its trouble. Yes Bank’s finances have been getting better over the past three years, but the bank still has a long way to go before it starts making money. So, SBI, ICICI Bank, HDFC Bank, and IDFC First Bank can’t just sell their whole stakes. In fact, I think they will wait until the Yes Bank reports its Q4FY23 results. After that, they can decide what to do about booking a profit. Because leaving their stake the same after the lock-in period is over could lead more people to buy Yes Bank shares.”
Positional investors should use a “buy on dips” strategy, Senior Manager of Technical Research at Anand Rathi, Ganesh Dongre, said, “At 15 per share, the price of Yes Bank shares has a strong base. So, people who have this stock in their portfolios should keep their stop loss at 15 and keep buying on big dips, since the stock seems to be in an uptrend on the chart. If you want to buy shares in Yes Bank, a drop in price to between 15.50 and 16 would be a great chance for you to do so. If the stock falls below 15 per share, I would suggest buying more around 13 to 13.50 per share and setting a stop loss at 12, since the price of Yes Bank stock could rise sharply if there is a speculative drop in the banking stock in the coming sessions.”
Anand Rathi, an expert, said that the price of Yes Bank shares could go up to 20 to 22 each in the medium term, or in the next two months.
The price of Yes Bank shares went back up last week after hitting a low of 16 each. But profit-taking started on Thursday because SBI’s three-year lock-in was coming up quickly. In fact, the fact that IDFC First Bank, ICICI Bank, Axis Bank, HDFC Bank, and other banks had to keep their shares for three years was another reason why Yes Bank shares were sold off.
Monday night, the price of a Yes Bank share was 16.90. The price of Yes Bank stock has dropped by more than 20% so far this year.