Buy Yes Bank, target Rs 424: Dharmesh Shah

We expect the stock to resolve higher from here on and gradually head towards Rs 424 in coming weeks as it is the price equality of last up move Rs 342-394, projected from a recent low of Rs 357, says Dharmesh Shah of ICICI Direct.com Research.

ICICI Direct.com Research

The share price of Yes Bank was trading in a broader range of Rs 275-383 over the past year. It took the shape of a contracting triangle pattern.

In July 2018 the stock recorded a breakout from contracting triangle pattern signalling reversal of the corrective trend and resumption of the fresh up move.

The corrective decline from the July 2018 high of Rs 394 has found support around Rs 360 levels being the confluence of the 50 percent retracement of the last leg of up move (Rs 327- 394) placed around Rs 360 and the previous breakout area which is likely to reverse its role and act as support in the short term.

Among oscillators, the weekly MACD indicator is diverging from its nine-period average, indicating an acceleration of upward momentum.

We expect the stock to resolve higher from here on and gradually head towards Rs 424 in coming weeks as it is the price equality of last up move Rs 342-394, projected from a recent low of Rs 357.

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