Yes Bank shares fell nearly 11% in the intraday trade to the day’s low of Rs 28.05 on the NSE on Monday amid profit booking, having witnessed a near 40% rally in the past four trading sessions.

The stock has been on a strong uptrend after the Reserve Bank of India’s (RBI) nod to HDFC Bank to buy a stake in the private lender and the State Bank of India’s denial of a stake sale in the company.

The price action was supported by strong volume action today with nearly 32 crore shares changing hands on the NSE around 11 am.

After settling slightly lower on Thursday on media reports that SBI was considering booking part profits in the private lender by selling a stake via block deals, Yes Bank shares rose by 4.6% on Friday to Rs 31.40 after SBI denied any such move. In a clarification issued on Thursday, the state lender called the report as “factually incorrect”.

The stock’s recent rally has been fuelled by the Reserve Bank of India’s (RBI) nod to HDFC Bank for acquiring up to 9.50% of the paid-up share capital or voting rights of the Bank. On Friday, Yes Bank shares scaled a fresh 52-week peak of Rs 32.85.

The RBI, while granting the above-referred approval has also conveyed that if HDFC Bank fails to acquire major shareholding within a period of 1 year from the date of the said RBI intimation letter, the approval will stand cancelled.Also Read: Hero MotoCorp shares fall 4% post Q3 earnings. Should you buy or sell?Since the news of HDFC Bank stake buy broke out on Tuesday, the stock has gained 40% taking it into an overbought zone. The Trendlyne data suggests its RSI and MFI hovering near the 78 and 81 mark, respectively. It is also trading above its 50-day and 200-day simple moving averages (SMAs).

“Yes Bank was a major gainer last week, up by almost 32% WoW, long-term indicators have turned positive for the stock, so those with risk appetite should hold the stock while others can look at booking profits in case the stock does not sustain above the 32 mark,” Aamar Deo Singh, Senior Vice President-Equity, Commodity & Currency at Angel One, has advised investors.

YES Bank reported robust growth in profit for the quarter ended December 2023, with the bottom line surging more than four times year-on-year (YoY) to Rs 231 crore. Net interest income, the difference between interest earned and interest expended, rose 2.4% YoY to Rs 2,017 crore.

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