Big Movers on D-Street: What should investors do with Yes Bank, Punjab Sind Bank & Central Bank of India?

Indian market closed in the red on Friday tracking muted global cues. The S&P BSE Sensex fell nearly 400 points while the Nifty50 closed below 18,500 levels.

Sectorally, selling was seen in IT, realty, metal, utilities, and power while buying was seen in FMCG and Healthcare stocks.

Stocks that were in focus include names like Yes Bank which was up nearly 11%, Punjab and Sind Bank rose over 7%, and Central Bank of India rallied over 4%.

Here's what Pravesh Gour, Senior Technical Analyst, Swastika Investmart at recommends investors should do with these stocks when the market resumes trading today:

Yes Bank: Buy
On the daily chart, the counter has broken out from an inverse head and shoulders formation pattern with long consolidation and a triangle breakout on the longer time frame.

It retested its previous breakout level and rallied in a V-shape. It is trading above its all-important moving averages.

The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.

On the higher side, Rs. 21 is the immediate resistance zone; above this, we can expect the Rs. 24 levels in the near term, while on the lower side, Rs. 17.5 is the strong support during any correction.

Punjab & Sind Bank: Buy
On the weekly chart, the counter has given a breakout of a long downtrend line with huge volume. This possibly indicates the start of an uptrend, which triggered a buy signal.

After that, it has seen a vertical rally since the low of Rs. 14 in September and has soared over 2.5 times to surpass the critical resistance of Rs. 26.

The stock has recently experienced a spectacular move, and thus there is the possibility of profit booking at Rs. 36 levels; above this, we can expect Rs. 40 levels in the near to short term.

On the downside, Rs. 28 is the major support during any correction.

Central Bank: Buy
Last month, the counter witnessed a breakout of inverse head & shoulders on the daily chart and achieved the target of that breakout at around Rs. 34. The overall structure of the stock looks lucrative, as it is trading above its all-important moving averages.

Now, Rs. 35 acts as a resistance level; above this, we can expect Rs. 40 in the near term, while on the downside, Rs. 27 is a major support.

Note - In the current environment, investors should be advised to use the buy-on-dip strategy in small size banks. Because the risk-reward ratio is unfavourable.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)