Say Yes to Yes Bank?
On Friday 30th Jan 2016, YES Bank roared 11.2% and caught the attention of the public. Many experts who had given sell recommendations with the price target of Rs.600 a few days ago, started forecasting a price target of Rs.950. It’s been almost 4 years since I switched-off myself to such TV programs.
Sometimes, I feel that if you keep an eye on an expert who changes his views on a particular stock quickly, and if you do exactly opposite of what the expert suggests, you could be minting money from market :-). I have personally never tried this trick of the trade but would want to try this sometime.
On 5th Dec 2015, Yes Bank received Bank of the year-India award and the stock was quoting @740. Even after good news, bulls couldn’t protect the crash and Yes bank made a low of Rs.631.55 on 20th Jan-2016. Some advisory companies use the innocence and greed of retail investors to sell their crap in the name of operator call, sure-shot call, and jackpot calls. Financial history across the globe has taught us that schemes to get rich quickly often lead to getting poor surely. Wealth creation from investing requires finding well-managed companies, picking them at right valuation and holding them tight for long.
What Charts Revel about Yes Bank?
As per charts, YES Bank is showing strength. Fresh buying and mandatory square-off position by short sellers can lead to the upsurge in stock price. The following chart will reveal story for Technical traders:
(Click to enlarge)
Investors can keep accumulating in a staggered manner systematically, only when you are convinced that value-migration from Public sector banks to private sector banks will happen slowly but surely. Before acting on conviction, please do remember “Good companies bought at bad valuations result in poor portfolio returns”
Risk mitigation and proper allocation of the corpus to a particular sector and stock plays the crucial role in wealth building. Consult your portfolio doctor regularly and stay wealthy. Share this article among your circle for the healthy discussion in the comments section of this post.
Information presented in the above article is available in public domain and it should not be treated as “Research Report”
Registration Status: I am not a SEBI registered Research Analyst.
As per SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014 and clarifications provided by SEBI
“Any person who makes the recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.”
Disclaimer: I do not hold any position in YES Bank.