Although yellowing leaves can be associated with too little water, it is common for a plant's leaves to turn yellow from too much watering. Can I ask why you are watering it daily? Is it in a pot, or in the ground? A newly transplanted tree in the ground may need daily watering, but only for about a week. After that you should try to cut the watering back to deep watering less often, ultimately just watering once a week if you have not had an inch of rain during the week. If you can post a photo of the tree, that might be helpful to us.
