YES Bank

Alchemist

Administrator
Staff member
#22
Yes Bank is now the top traded stock on the NSE in value terms.

It seems some big buyer has emerged and is absorbing all the shares.

There is a good chance that today's low was a short term bottom for the stock, maybe a medium term bottom too if global markets remain stable.
 
#23
Yes Bank is now the top traded stock on the NSE in value terms.

It seems some big buyer has emerged and is absorbing all the shares.

There is a good chance that today's low was a short term bottom for the stock, maybe a medium term bottom too if global markets remain stable.
Yes, really massive volumes today.

Next week,if the RBI doesn't tighten the noose on liquidity further,the stock could see a relief rally given the huge number of open short positions in the stock.
 
#24
Today's delivery stats:

NSE:46,34,901 (Delivery % dropped from 40.7 yesterday to 28.77 today).

BSE: 3,37,000 (Delivery % dropped from 24.17 yesterday to 12.82 today).
 

Alchemist

Administrator
Staff member
#25
Today's delivery stats:

NSE:46,34,901 (Delivery % dropped from 40.7 yesterday to 28.77 today).

BSE: 3,37,000 (Delivery % dropped from 24.17 yesterday to 12.82 today).
The stock was much more volatile on Friday than on Thursday. That explains the drop in delivery %. Day traders prefer volatile stocks.

The actual deliverable quantity on Friday was almost the same as on Thursday.

NSE:
Thursday deliverable quantity: 48,81,107.
Friday deliverable quantity: 46,34,901.

BSE:
Thursday deliverable quantity: 4,76,290.
Friday deliverable quantity: 3,37,000.
 

Alchemist

Administrator
Staff member
#26
There is something seriously wrong with Yes Bank.

The stock is down 12% again today.

Is there some kind of fraud or scam happening in this bank? Are its reported numbers too good to be true?

What do you think guys?
 

ramkasi

Active member
#27
ING VYSYA down 10 percent too, I think it is falling inline with other banks or some serious management crisis.

I will stay away from this counter for now.
 

Alchemist

Administrator
Staff member
#30
Till now I think it is just falling more because of its riskier profile. But then who knows.
Yes, other than the stock market activity, there is nothing about this company till now that suggests any kind of foul play.

The problem is that financial irregularities are not easy to detect in case of financial firms.

If a non-financial firm manipulates its numbers, the cash flow statement usually (but not always) reveals the stresses in the business.

(There can be cases like DCHL, where the company was under-reporting debt and thus was manipulating the cash flow statements too. However these are exceptions)

Cash flow statement is not very reliable in case of financial firms and therefore investors have no choice but to believe financial statements published by the management, assuming that the auditors are doing their job sincerely.
 

Alchemist

Administrator
Staff member
#31
Bulk deal reported on NSE for Yes Bank:

NORWEST VENTURE PARTNERS X FII - MAURITIUS
BUY 3540799 @ 292

DB INTERNATIONAL ASIA LIMITED
SELL 3540799 @ 292

Today's delivery quantity on NSE was 49,83,223.

70% of the delivery volume was from this single trade.
 
#32
I sold some HUL shares and purchased 400 shares in Yes Bank at Rs 371.

In my opinion,the concerns on the impact of RBI measures look overdone.

Of course,next week if RBI took any more 'steps' the stock may fall more possibly to 330 and further to even 280 levels.

So I initiated a ratio put spread,purchased 1 lot Aug 380 strike put at Rs 26.50 and sold 2 lots Aug 330 strike put at Rs 8.40.
I hope you have closed your ratio spread. As such, ratio spreads are much riskier than ordinary 1:1 spreads.

They tend to give a false sense of security while in fact we are taking on unlimited risk.
 

Alchemist

Administrator
Staff member
#33
I hope you have closed your ratio spread. As such, ratio spreads are much riskier than ordinary 1:1 spreads.

They tend to give a false sense of security while in fact we are taking on unlimited risk.
As both 380 and 330 puts are now deep in the money, their delta is almost -1.

Below Rs. 285, every Rs. 10 fall in the price of Yes Bank will increase the loss by Rs 5000.
 
#34
Forgot to update, the spread is still open, went short on the futures 2 lots at 316 and long 2 lots 300 Call @17.

Also booked loss on the delivery trade @313, loss of about Rs 24000.
 

Alchemist

Administrator
Staff member
#38
Yes Bank's stock price erosion has little to do with what is happening in the boardroom.

It has more to do with the tightness in the money market and overall economic conditions.

Kotak's Sanjeev Prasad today expressed doubts about Yes Bank's loan book in an interview on CNBC TV18. It is surprising that in spite of deteriorating economic conditions and high exposure to SME sector, Yes Bank has hardly seen any increase in NPLs in the last few quarters. I will post the link to the interview as soon as it is published on moneycontrol.com.
 

Alchemist

Administrator
Staff member
#39
Here is the link to the interview:

One of the concerns that market has on Yes Bank is just the book itself. It is one of the few banks that has not seen any NPL problem in the last 1-2 years and in a cycle it is completely unscathed as far as NPL problem is concerned.

Given the fact that Yes Bank has most of its loan book to the corporate and Small and Medium Enterprise (SME) segment, something like 86 percent of the loan book is to the corporate and SME segment. In that context, if a bank has pretty low NPLs then unless you get some conviction on that, the bank may continue to languish at current valuations.
EMs to be under pressure due to QE tapering: Kotak Insti - CNBC-TV18
 
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