Buy BHEL, IREDA shares; stay cautious on YES Bank stock, says StoxBox

Indian benchmark indices posted solid gains during the trading session on Thursday on the back of positive global cues, triggered by the rate cut optimism by the US Fed and ECB. Positive domestic economic data supported the sentiments. BSE Sensex zoomed 1,439.55 points or 1.77 per cent, to end the session at 82,962.71. NSE's Nifty50 soared 470.45 points, or 1.89 per cent, to close at 25,388.90 for the day.

Some buzzing stocks including YES Bank Ltd , Bharat Heavy Electricals Ltd (BHEL) and Indian Renewable Energy Development Agency Ltd (IREDA) are likely to remain under the spotlight of traders for the session today. Here is what a Ameya Ranadive, CMT CFTe, Senior Technical Analyst at StoxBox has to say on these stocks ahead of Thursday's trading session:

YES Bank | Cautious | Resistance: Rs 24-27 | Support: Rs 22.8-22

YEs Bank is currently trading at Rs 23.40 and appears to be finding strong support within the Rs 22.80 to Rs 22 range, aside from a few market outliers. The RSI has rebounded from oversold territory and is presently at 44.52, indicating growing demand at lower levels. While the stock is trading above its 200-day EMA, it remains below its 20-day and 50-day EMAs, suggesting a slightly bearish to sideways trend in the short term. For a more bullish sentiment to emerge, the stock would need to break and sustain above Rs 24. This level could trigger further buying interest. From a risk-reward perspective, a long position can be initiated with a stop loss at Rs 21.50, aiming for targets around Rs 27.

Bharat Heavy Electricals | Buy | Target Price: Rs 295-315 | Stop Loss: Rs 245

BHEL is currently quoting at Rs 265, following a 21 per cent correction from its recent highs over the last two and a half months. BHEL has rallied significantly from Rs 64 to ₹332 in about 18 months since 2023. The company's Q1 results revealed weaker-than-expected execution and profitability, contributing to a profit-booking phase resulting in distribution for the last 2 months. The stock is presently near minor support at Rs 260. A long position can be considered if the Rs 265 level is sustained for several days. A dynamic stop loss can be placed below the 200-day EMA, near Rs 245, with potential mid-term targets of ₹295 to ₹315.

Indian Renewable Energy Development Agency | Buy | Target Price: Rs 265-280 | Stop Loss: Rs 225-215

IREDA is trading at Rs 232, down 25 per cent from its all-time highs, after a remarkable rally from December 2023. Currently, the stock is holding minor support at Rs 225 and has maintained this level for a week. A breakout above Rs 240, with sustained momentum, could attract buying interest as supply pressures are observed at these levels. Traders can consider entering long positions with a stop loss around the 100-day EMA, near Rs 215, and aim for mid-term targets in the range of Rs 265 to Rs 280. This view, however, will be negated if the stock breaks below the Rs 225 support level.