Before Q1 results, YES Bank shares increase; should you buy, sell, or hold?

Shares of YES Bank: On Friday, amid speculations that Carlyle and Advent were close to buying a sizable interest in the company and quarterly results, YES Bank shares reached a high of Rs 15. Today, YES Bank shares achieved an intraday high of Rs 15 per share, up around 5% from their Thursday closing price of Rs 14.30 per share on the NSE. In the last month, the stock has soared by 18%.

To sell its subprime loans, the private lender partnered with JC Flowers Asset Reconstruction Co. According to media sources, the senior management of YES Bank, the State Bank of India, the private lender's largest shareholder, and representatives from the Reserve Bank of India (RBI) met with Carlyle and Advant executives this week to finalize the deal's details.

The Economic Times stated that the possible investment size might reach $1 billion. The bank is estimated to be worth $4 billion. It stated that preferential warrants, which can be converted into shares at a later time, would most likely be used for the stake sale.

The immediate hurdle of Rs 16 could cause profit booking for the stock, according to analysts, but if it is decisively broken, it could result in gains of between 25 and 40%. They believe that Rs 13.20–13.60 will provide support for the index on the downside.

In line with its competitors, YES Bank Ltd. is anticipated to have a strong Q1 FY23 result, according to Santosh Meena, Head of Research at Swastika Investment. Although Q1 FY22 was adversely damaged by the delta wave, we estimate the bank to see an increase in advances and an improvement in asset quality compared to the same quarter last year. As a result, YES Bank has attracted a lot of attention from investors and has seen a whopping return of about 17% in the past month.

The market is anticipating solid Q1 earnings, and there is substantial speculation that YES Bank may report its NPA below 2% during the announcement of its first quarter results for the fiscal year 2022–23, according to Ravi Singhal, CEO at GCL Securities. Following good Q1 results on Saturday, the Dalal Street bulls are anticipating some significant investment deals. Because the market will be closed on Saturday and the stock could trade in either direction on Monday, the recent surge in YES Bank shares is entirely speculative.

The stock has been consolidating nicely, according to Vikas Jain of Reliance Securities, and the momentum should continue now that it has crossed several moving averages on the weekly and monthly charts.

"The stock has broken free from the 200-day moving average's band on a significant volume. Around Rs 18.5-90 should be the first significant resistance. Where the stock was previously floundering, at Rs 12.5–13 levels, strong support should be evident. For targets of Rs 18.5–19, any decrease toward the range of averages at Rs 13.2-13.60 should be a good time to purchase, according to Jain.

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