Yes Bank share price appreciated more than 25 per cent yesterday after the news break of SBI investments in the private lender bank. However, on the very same day, the Reserve Bank of India decided to suspend the Board of Directors of Yes Bank and put a moratorium on depositors by putting a limit on the money withdrawal. Such incidents might go against the Yes Bank shares and it may witness heavy selloff in the coming stock market sessions, say experts.
Expecting heavy selloff in the Yes Bank shares Prakash Pandey, MD & CEO at Plutus Advisors said, “The RBI decision in regard to the Yes Bank has put doubt in the minds of the stock market investors and we can witness heavy correction in the Yes Bank shares today. In fact, it will have some negative impact on the entire banking stocks as public sector banks are already under huge selling pressure.” Pandey advised Yes Bank shareholders to come out of their positions whenever they feel convenient.
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Speaking on the Yes Bank shares Chandan Taparia, Derivative & Technical Analyst, Motilal Oswal said, “Yes Bank share price appreciated by around 27 per cent yesterday due to the reports on Government of India directing SBI to lead a consortium that will buy a stake in Yes Bank. The report says that SBI has been authorised to pick other consortium members and an announcement in this regard is expected soon.” However, Taparia maintained that Yes Bank shares are oscillating in the range of Rs 25 to Rs 40 and since it had already scaled to its higher cap, further rise in the counter was highlu unlikely.
On the suggestion to the stock market investors in regard to Yes Bank stocks, Rohit Singre, Senior Technical Research Analyst at LKP Securities said, “Yes Bank shares have heavy resistance at Rs 43 per stock levels and it already appreciated around Rs 38 yesterday. so, one should avoid taking any position in the Yes Bank stock as the overall trend of the Yes Bank share price is still weak.”