Yes Bank share price traded downward on Wednesday, marking its second successive session on the decline. The stock was at Rs 18.35 at the time of writing, down by -0.8% on the daily chart. Also, its year-to-date returns are at -6.3% as of this writing, pointing to a bearish-leaning sentiment.
Earnings and Supreme Court Decision Weigh In
Yes Bank (NSE: YESBANK) will release its quarterly earnings report on Friday, and that will inject fresh impetus in the stock price’s momentum.The bank beat earnings forecasts in the last three quarters, and is under pressure to keep up the momentum.
Yes, Bank share price trajectory was impacted significantly by talk of a potential takeover by foreign financial institutions. However, regulatory barriers by the Reserve Bank of India diluted the upside.
Meanwhile, Yes Bank share price is also under pressure from the suspense generated by a Supreme Court decision on the bank’s move to write off AT-1 bonds worth Rs 8,415 crore ($approximatesly $1.01 billion) as part of its bailout. The court refered the case to another bench on Wednesday, with a four-judge bench handing over the case to a single judge to start hearings in a week’s time.
Much is at stake in the case, as it could potentially eat into a substantial chunk of the bank’s finances. If the court agrees to balance bondholders’ losses as per Article 142, it could boost investor confidence and ease panic selling in the short term.
However, the stock could come under immense pressure if the appex court agrees with the High Court decision requiring Yes Bank to refund the bondholders. That could lead to a significant financial outflow, weighing negatively on the bank’s base line.
Yes Bank Share Price Prediction
Yes Bank share price pivots at Rs 18.40 and the sellers will be in control if resistance persists at that level. The stock will likely move lower to find the first support at Rs 17.95. However a stronger downward momentum will break below that level and potentially test Rs 17.25.
Conversely, the momentum will shift to the upside if YESBANK breaks above Rs 18.40. That could see the first resistance encountered at Rs 18.80. The downward thesis will be invalid if the price breaches that barrier. If that happens, it could trigger a stronger upside to test the second resistance at Rs 19.30.
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