Yes Bank:Another Example Of Buying A Good Business In An Unusual Condition--Yes, 787-764 May Be Proved As Good Demand Zone

Technically, for Yes Bank (CMP: 798), immediate support zone is around 794-787-780-764 and only consecutive closing below 764, it may fall to 740-722 area. Sustaining below 722, it may further fall to 705-685-670 area in the worst bear case scenario.

On the upside, sustaining above 807, Yes Bank may immediately target 819-835 & 851 zone in the short term. Only consecutive closing above 851, it may further target to 858-868-878 area in the near term.In the mid term, sustaining above 878, it could scale 900-910-920 territory and above that 935-975-1025-1050 zone might be the target in long term (FY:16-17).

Bottom Line: Technical Trading Levels (Positional)

	SL</>2	FROM SLR
		Yes Bk	CMP	798
			T1	T2	T3	T4	T5	T6	T7	SLR
Strong >	794		807	819	835	851*	858-868	878*	897-975	<780
Weak <	780		770	764*	740	722	705	685	670-637	>794

Yes Bank yesterday suffered unusual melt down after UBS report of  large loan exposoure to vulnerable corporate groups & their possible default (NPL/NPA).

But, the Yes Bank management later vehemently denied such probability and termed the data base used in UBS report as old & historical, not based on actual disbursements of approved credit limit with various conditions. As par Macquarie & BOA-ML also, "all is well" with Yes Bank & the projected NPA/Stressed assets report may be quite exaggerated.

In any way, the type of scenario that is UBS is projecting may melt down all the banking players (Pvt/PSU) by & large and not Yes Bank alone.

For the time being, one should follow pure technicals in Yes Bank, which is indicating 787-764 is historically strong demand (support) & 878-897 is strong supply (resistance) zone. 

As par BG metrics, current median valuation of Yes Bank may be around 920 and projected fair valuation might be around 1020-1135-1220 (FY:16-18) in the current market trends.

SCRIP	EPS(TTM)	BV(Act)	P/E(AVG)	LONG TERM	SHORT TERM	MEDIAN VALUE	200-DEMA	10-DEMA
YESBANK	48.15	279.36	22.02	902.32	934.51	918.42	767.91	823.67

YESBANK

59.25

395.3

22.02

1000.94

1036.64

1018.79

767.91

823.67

YESBANK

73.51

559.35

22.02

1114.90

1154.67

1134.79

767.91

823.67

YESBANK

84.55

791.45

22.02

1195.70

1238.35

1217.02

767.91

823.67