InvestorQ : Can I buy Yes Bank after the 30% correction?
Juvina Maggie made post

Can I buy Yes Bank after the 30% correction?

Answer
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Angel dcosta answered.
1 year ago


The selling on NSE was supported by huge volumes in the cash market and this kind of selling rarely gets over in just one day. Markets are worried that there could be more such instances like Jet Airways and IL&FS in the books of Yes Bank which may have to be written off. Note that brokers like Macquarie have drastically cut the target price of the stock from Rs.270 to Rs.165.

Should you buy Yes Bank at current prices?

After the huge loss of Rs.1507 crore reported in the March quarter, the entire valuation metrics will go for a toss. Also the losses that the bank has reported in the March quarter, there are questions being raised over the quality of assets all over again. Normally, such a sharp correction rarely gets over in one day nor can you really expect a V-shaped recovery in such stocks. The best strategy will be to stay away from the buying the stock for now. You can look to play the stock on the short side using stock futures or put options.