[Contrarian Swing Trade] YES BankCan't stress this enough, highly against the primary trend trade, manage your risk well.
Premise:
Wicked it's low at bi-weekly demand order-block (support)
At a high volume node
Weekly closed 10% above weekly low, tempting me to take a long call on it with well managed risk.
Target - 213.5
STOP - 159
Interesting thought for reality check:
Yes Banks current book value is at Rs 116.2, which is trading at a price to book of 1.5 times. Which is fair enough for a private bank. A book value of Rs 116.2 puts the book size at Rs 26,900 Crs. The book value of Yes bank will come down by Rs 5,000 – 6,000 Cr in next one year owing to higher provisions. This will effectively put book value price at post one year will be at between Rs 90 – 95. Considering its growth rate in near term and its asset quality a 1.3 times book can be given. This puts the stock in the range of Rs 115 – 125. This is the range where the stock appears decently valued based on its future price to book. If it goes below that then it might start looking as an attractive investment option.
