Trading Call - YES Bank

We recommend a sell in YES Bank from a short-term perspective. It is clearly evident from the charts of YES Bank that it has been on an intermediate-term downtrend from its all-time high of Rs 277 recorded in January 2008, forming lower peaks and lower troughs.

On June 30, the stock decisively penetrated the significant support level of Rs 120 by tumbling 8 per cent. The intermediate-term downtrend is still in place. After encountering twin resistance at Rs 120 (a resistance and the downtrendline), the stock resumed its downtrend by plummeting 9 per cent on July 15, reinforcing the bearish view.

The daily and weekly relative strength indices are featuring in the bearish zone. The stock is trading well-below its 21- and 50-day moving averages. Considering that the intermediate-term down trendline is intact, we are bearish on this stock in the short-term.

We expect the stock to decline until it hits our target price of Rs 95 in the upcoming trading sessions. Traders with short-term perspective can sell the stock, while maintaining stop-loss at Rs 113.