BHEL, IndusInd Bank, IIFL Finance: Stocks to buy - check price target, stop loss & more

Indian equity benchmark indices managed a decent rebound but settled lower on Monday on the back of muted global cues after the peace talks failed in Islamabad. Traders are looking at India Inc's Q4 earnings. The BSE Sensex dropped 702.68 points, or 0.91 per cent, to close at 76,847.57, while NSE's Nifty50 tanked 207.95 points, or 0.86 per cent, to end at 23,842.65 for the day.

Select buzzing stocks including Bharat Heavy Electricals Ltd (BHEL), IndusInd Bank Ltd and IIFL Finance Ltd are likely to remain under the spotlight of traders for the session today. Here is what Bajaj Broking has to say on them ahead of Wednesday's trading session:
 

IIFL Finance | Buy | Target Price: Rs 498 | Stop Loss: Rs 424

The share price of IIFL Finance is seen rebounding from the key support area of Rs 415-425 thus offers fresh entry opportunity with favorable risk reward set up. Buying demand is seen emerging from the support area being the confluence of the previous major lows and the 200 weeks EMA which has historically acted as strong support. The weekly stochastic is placed at an oversold territory and is at the cusp of generating a breakout above its three periods average thus validating positive bias. The stock is expected to move towards the target level of Rs 498, which represents the 100-days EMA and the 50 per cent retracement of the recent breather from Rs 566 to Rs 421.
 

IndusInd Bank | Buy | Target Price: Rs 909 | Stop Loss: Rs 778

IndusInd Bank has generated a breakout above the falling channel and has moved above the 20 days EMA signaling strength and offers fresh entry opportunity. Buying demand has recently emerged from the support area of Rs 760-780 being the 80 per cent retracement of the previous major rally of Rs 710- 968. Today’s Gap area of Rs 787-810 will act as immediate support and sustaining above the gap area will keep the bias positive. The daily 14 periods RSI is seen sustaining above its nine periods average thus validates positive bias in the stock. The stock is expected to move towards the target level of Rs 909, which represents the previous breakdown area and the 80 per cent retracement of the recent decline from Rs 968 to Rs 751.
 

Bharat Heavy Electricals | Buy | Target Price: Rs 313 | Stop Loss: Rs 268

BHEL has generated a breakout above last 2-months consolidation range Rs 241- 277 and thus offers fresh entry opportunity. The stock in the process has moved above the 50-days EMA and has also recovered its 8 weeks decline (Rs 277- 240 ) in just one week. A faster retracement of its previous decline highlights strength and continuation of the up move. The stock is expected to move towards the target level of Rs 313 levels being the measuring implication of the recent range breakout Rs 241-277. The daily MACD has recently generated a buy signal and is seen sustaining above its 9 periods average thus supporting the positive bias in the stock.