Something interesting happened today. Yes Bank’s shares suddenly jumped over 5%, which got a lot of investors talking. The stock opened at ₹21.40 and later touched a day high of ₹22.87. It’s not just a one-day thing either, in the past few weeks, this stock has quietly climbed up, surprising folks who’d almost given up on it. But before getting too excited, it’s worth looking at what’s really going on here.

Stock Performance Highlights

Yes Bank appears to be performing well in the near term. It has outperformed the Sensex over the past month, Yes Bank gained over 27%, while the Sensex barely moved, going up just 1.5%. But hold on, because the long-term story isn’t that cheerful. Over the last five years, the stock has actually dropped by 22%, while the Sensex shot up by more than 150%. So yes, it’s been a rough ride.

Technical Indicators: Mixed Signals

Now, let’s talk about the technicals, the numbers behind the buzz.

MACD, a popular signal, shows strength for now (short-term), but long-term? Not so much, it’s flashing a warning.

Bollinger Bands are pointing towards a possible uptrend, but they’re also hinting at more volatility.

The Moving Averages don’t look great either. On daily charts, they show slight weakness, maybe some pressure ahead.

And OBV? That’s On-Balance Volume, it suggests people have been buying more lately, especially in the past month.

So overall, kind of a mixed bag.

Yes Bank vs Sensex: A Short-Term Comeback

Let’s be honest, Yes Bank isn’t anyone’s top pick anymore. But the past month has been different. With a 27% gain, it’s made a bit of a comeback, at least for now. Compared to the Sensex’s small rise, that’s impressive. Still, long-term investors are cautious and absolutely justified.

What’s Driving the Recent Surge?

Turns out, there’s a deal brewing. Japanese giant SMBC is planning to buy a 20% stake in Yes Bank. If the RBI grants approval, it could lead to a surge of foreign investment in Indian banks. It’s a big deal worth ₹13,482 crore and could even help SBI and others exit some of their old rescue investments.

Regulatory and Investment Outlook

SMBC may even raise its stake over time. But even if that happens, RBI will limit its voting rights to 26%. So it’s not complete control, but enough to make a difference.

Disclaimer

This article should not be regarded as investment advice; it is only meant to be informative. Consult a financial advisor before investing.