YES Bank, Bharat Heavy Electricals, Paytm: How to trade these 3 buzzing stocks

Indian benchmark indices ended little changed during the trading session on Monday. Traders continued to remain cautious on the back of rich valuations and consistent FII selling. BSE Sensex inched up only 9.83 points or 0.01 per cent, to end the session at 79,496.15. NSE's Nifty50 shed merely 6.90 points, or 0.03 per cent, to close at 24,141.30 for the day.

 

Some buzzing stocks including YES Bank Ltd, Bharat Heavy Electricals Ltd (BHEL) and One 97 Communications Ltd (Paytm) are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Technical Research Analyst, at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:

 

One97 Communications | Book Profits

Paytm has surged by nearly Rs 545 in the past 6-7 months, reflecting a remarkable 176 per cent price appreciation. Currently, it is trading well above all major exponential moving averages (21, 50, 100, and 200 DEMA). Given these elevated levels, a pullback is likely in the near term. Therefore, we recommend booking profits and avoiding new long positions at this stage.

 

YES Bank | Range-bound

YES Bank's stock price is approaching a 61.8 per cent retracement of its previous uptrend that spanned from August 2021 to February 2024. This retracement level is significant in technical analysis, as it often serves as a potential area of support or resistance, indicating that the stock may consolidate or reverse in this zone. Moving forward, we expect the stock to trade sideways within a defined range of Rs 18.80 to Rs 21.80. Given this anticipated consolidation phase, it's advisable to hold off on new buying positions until a clear breakout occurs. Specifically, a fresh buying signal would be considered only if the stock achieves a daily close above the Rs 21.80 level, which would suggest renewed upward momentum.

 

Bharat Heavy Electricals | Caution

BHEL has been in a consistent downtrend for the past four months, characterized by a pattern of lower highs and lower lows. This bearish structure indicates that sellers have been in control, pushing the stock to new lows while also preventing it from establishing a stable upward momentum. Recently, BHEL did attempt a rebound; however, it struggled to sustain gains and failed to close above the critical 200-DEMA. From a technical indicator perspective, the RSI remains below the 50 level, indicating that the stock is still in bearish territory, warranting a cautious stance. For a potential reversal or fresh upside to be confirmed, BHEL would need a daily close above Rs 255. Such a close would break the recent downtrend pattern and may attract fresh buying interest, suggesting a shift in momentum to the upside.