SBI Share price and Yes Bank Share price - Detailed Technical Analysis for Traders
SBI has found support near its multiyear (11 years) long horizontal trend line on the monthly chart. In the previous three instances whenever prices have found support near its multi year long trend line stock has almost doubled. Vishal believes that the positional trend of the SBI has turned bullish, but looking at the steep rise it is advisable to utilize short-term dips to accumulate longs.
State Bank of India (SBI) and Yes Bank have seen some good price volume action in past few sessions. Bank Nifty has moved significantly and is the major contributor to help Nifty make new highs. Vishal Wagh, Research Head at Bonanza Portfolio shares his technical view on SBI and Yes Bank as he believes stock can give good returns from here on to investors. SBI has clearly indicated in their commentary that investment in Yes Bank will give them decent returns in long term.
SBI Share Price:
SBI has moved up after consolidation on the weekly time frame suggesting a rise in optimism among the investors. Prices have witnessed a spectacular rally in the last three weeks leading to an almost 20 percent gain.
The weekly RSI (14) has made a double bottom at the oversold zone (below 30) and moved up higher, which indicates improved bullish sentiments. Besides, the price has remained significantly above 50 EMA on the weekly time frame.
Since last week of May 20, prices are trading in higher top higher bottom formation on a weekly interval, and meanwhile, bullish formation is supported with a horizontal trend line breakout which is placed at Rs 230 levels.
In the recent fall, the stock has found support near its multiyear (11 years) long horizontal trend line on the monthly chart. In the previous three instances whenever prices have found support near its multi year long trend line stock has almost doubled. Vishal believes that the positional trend of the SBI has turned bullish, but looking at the steep rise it is advisable to utilize short-term dips to accumulate longs.
Strong supports are around Rs 195 levels and while these hold, investors can expect prices to edge higher towards 265 - 275 levels.
Yes Bank Share price:
Yes Bank on the long-term horizon is still in a bearish downtrend. Even in the last four months where all equity markets remained bullish, Yes Bank has just managed to hold in two figures. On the monthly chart, the chart formation is lower low lower high. And lows of Rs 11.10 in July 2020 may play the role of support if any further correction comes in the stock. In the last four months, the range for the stock remained in between Rs 11 to Rs 17. Any decisive cuts on the higher side will bring the strength back in Yes Bank. The said move may push it towards levels of Rs 25 and Rs 36.
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On the weekly basis, the chart is showing some buying interest in the range of Rs 11 – Rs 15. RSI managed to quote above 40 but still, it is in a weak zone. The slop of 20 weeks EMA is just getting a bit flattish in the last couple of weeks. But 50 Weeks and 200 Weeks EMA is still sloping downwards. So from weekly chats, the buying interest can be noticed due to a spike in volume but prices are still within the range due to supply around Rs 16 - Rs 17 zone.
On a shorter(daily) time horizon, In the month of August Yes Bank has created an Island Reversal which has duly tested in the month of October and in November the move there is an exhaustion gap followed by a runaway gap near to Rs 13-14 and now Yes Bank is holding above it. The RSI is quoting above 60 and stochastic is also showing strength in the current move. On the moving average front, the story looks very interesting as 20 EMA is on the verge of cutting 50 EMA upward the slope of 20 EMA is upward and 50 EMA is started flattening before moving upward. It is an early indication in the stocks that it is getting accumulated. Further confirmation is required for any long position in the stock.
So, one can see that if Yes Bank manages to cut levels of Rs 17, then bigger upsides will be seen in the stock for the levels of Rs 25 – Rs 30.
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