Chart Check: YES Bank jumps over 30% in one month; will it rise more?

After breaching the Rs 18 mark, the breakout should see a surge towards Rs 24 to Rs 23 range.

Shares of YES Bank were trading nearly 0.5 per cent lower in the late morning deals on Wednesday. The stock has risen over 30 per cent in the past month, recovering from the low of Rs 12.20 to the today's high of Rs 15.90 on the NSE. The stock has outperformed the market in one month, following the news of bank's inclusion in the MSCI India Index with effect from December 1. In comparison, the S&P BSE Sensex has rallied 12 per cent.

That apart, the private sector lender aims to double its retail plus small and medium (SME) assets and liabilities book by the end of calendar year 2023. Rajan Pental, head, retail banking, YES Bank, said the bank will not show any irrational exuberance to grow business. “We would like to be present in segments which customers want rather than in what we want to sell. The growth strategy will be tailored to regional requirements. The bank is focusing on scaling up business through 1,106 branches and dealers, OEMs and bancassurance partners,” said Pental. 

Here's a look at what technical indicators suggest for the stock. 

The current upmove has a strong underneath support of Rs 12 levels and till this support is defended, the immediate trend may see a rally towards the next resistance of Rs 18 levels.

Upon conquering the Rs 18 mark, the breakout should see a surge towards Rs 24 to Rs 23 range. We can see a bearish divergence on the Relative Strength Index (RSI), yet the stock price is not showing any major weakness. The Moving Average Convergence Divergence (MACD) is firmly supportive of the upside with a positive crossover heading in the upward direction. MACD has successfully sustained the momentum above the zero line, which suggests that the selling pressure will witness buying momentum, as per the daily chart. CLICK HERE FOR THE CHART

The volumes are trading above the “average volume”; this showcases the interest of market participants, which is likely to increase even if the stock sustains at the current levels, as per the daily chart.