MY H1B Transfer is denied. Can I stay back and apply for new H1B transfer

Hi I have entered US in 2015 through employer A and filed Extension and approved till 2019. I have field H1B transfer to employer B in 2017 Aug and RFE received in 2017 Nov and RFE responded in Jan 2018.

Now my petition got denied. Can I stay back in US and file new H1B transfer to employer C since I have valid I797 till 2019?

The sooner you file the greater the chances the USCIS may approve your change of employer petition for H-1B. Otherwise, you will have to leave the country and reenter if you have a valid H-1B visa without having to go to the Consulate.