Short Yes Bank; may decline to Rs 470: Bothra

According to Kunal Bothra of LKP, one can short Yes Bank with a stop loss of Rs 505. The stock may decline to Rs 470-475 levels.

Bothra told CNBC-TV18, "The overall weakness for the Bank Nifty is purely because it has made a lower top on daily charts and that’s the reason why we are seeing a little bit of pressure on Bank Nifty as compared to Nifty." He further added, "I have a sell on Yes Bank because it is clearly making a distribution pattern. If one look at the hourly charts or probably short-term charts as well, even if we look at the line charts it has formed a fresh low. My sense is that the stock could be heading towards Rs 470-475 levels with a stop loss Rs 505 I have initiated a short on Yes Bank." "For Bank Nifty the important support now lies at the 50 day moving average (DMA) which is at 11,800-11,850 on Bank Nifty spot levels. It is a far level from current prospective but my sense is that looking at the high beta and the volatility of this index 11,800 could be a very crucial support for Bank Nifty going forward."