Stocks to buy under ₹200: Mehul Kothari of Anand Rathi recommends three stocks to buy or sell

Stocks to buy under ₹200: Last week proved largely range-bound for the Indian markets. On a weekly basis, the Nifty 50 slipped 0.06%, while the Sensex eked out a marginal 0.01% gain. Midcap stocks underperformed the benchmarks, declining 1.2%.

Adding to the market’s surprise, the RBI announced a 25-bps rate cut, despite broad expectations that it would maintain the status quo amid record-low inflation and strong economic momentum.

Stock market next week

Mehul Kothari, Deputy Vice President of Technical Research at Anand Rathi, believes the Indian stock market bias remains positive until the crucial support band of the Nifty 50 index, placed at 26,000 to 25,800, remains intact. The Anand Rathi expert stated that the Nifty 50 index may soon reach 26,500 once it breaks above 26,300 on a closing basis.

Speaking on the outlook of the Nifty 50 index, Mehul Kothari of Anand Rathi said, "The Indian equity market ended the week ending December 5, 2025 on a positive note despite early volatility, with the Nifty 50 closing at 26,192 (+0.61% on Friday) and the BSE Sensex at 85,755 (+0.57%), trimming weekly losses to just 0.2%—its mildest weekly dip in recent months. A surprise 25-bps repo rate cut by the RBI to 5.25%, the third in 2025, coupled with benign CPI at 2% and an upgraded FY26 GDP forecast of 7.3%, ignited sharp rallies in rate-sensitive sectors; banking, auto, realty and NBFCs surged, led by standout performers such as Bajaj Finance (+6.2% weekly), HDFC Bank, Axis Bank and M&M. Domestic institutions poured in ₹8,400 crore over the week to offset continued FII selling of ₹5,100 crore, while IT heavyweights Infosys, TCS and HCL Tech gained 3–5% on a softer rupee ( ₹89.67/$) and renewed US Fed rate-cut hopes."

Kothari said that Nifty's action this week aligned precisely with expectations: intra-week high at 26,325 (edging below the 26,300 trigger) and low at 25,912, hugging the 26,000–25,800 support band before settling at 26,192. This low-volume consolidation solidifies the handle of the multi-year cup-and-handle setup, priming for resolution soon.

He added that the medium-to-long term remains strongly bullish—a close above 26,300–26,350 would confirm a breakout, targeting 28,000–30,000+ by mid-2026. In the near term, the index could rise to 26,500–26,700 if 26,300 is breached, while 25,800–25,900 remains the prime buy-on-dips zone. Although benchmark heavyweights show signs of fatigue, market breadth stays firm. Midcaps and smallcaps have paused this week but appear poised for renewed outperformance as liquidity rotates; watch for acceleration in the coming sessions. Weekly closes above 25,700–25,600 keep the uptrend intact. The market is simply recharging for the next major push higher—patience will be rewarded.

On the outlook of the Bank Nifty index, Mehul Kothari of Anand Rathi said, "Bank Nifty behaved exactly as highlighted last week: after kissing a lifetime high of 59,946, it met stiff supply near the long-term rising trendline resistance and has now climbed steadily higher, closing the week around 60,050–60,100 — now knocking on the door of the much tougher overhead supply zone of 60,500–61,000. As anticipated, bulls face a formidable hurdle here; multiple touches of this rising trendline over the past year make it a high-probability reversal territory in the near term. We continue to expect relative underperformance and likely profit-booking once the index tags or marginally exceeds 61,000. Immediate support remains 58,500–58,000; a decisive drop below this level would confirm the short-term top. Until then, caution is advised on fresh aggressive long positions in banking heavyweights."

Mehul Kothari's stock recommendations today

Regarding stocks to buy under ₹200, Mehul Kothari of Anand Rathi recommended these three buy-or-sell stocks: Indian Oil, Tata Steel, and Lemon Tree Hotels.

Indian Oil: Buy around ₹163, Target ₹170, Stop Loss ₹159

Tata Steel: Buy around ₹167, Target ₹176, Stop Loss ₹163

Lemon Tree Hotels: Buy around ₹165, Target ₹175, Stop Loss ₹159

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.