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

Stocks to buy under ₹200: After six consecutive weeks of decline, there was some relief in the Indian stock markets. Although it was a truncated week due to the trading holiday on 15th August, the benchmark Nifty 50 managed to stage a recovery. The index initially struggled for direction but eventually gained momentum, adding over 350 points during the week and closing with more than 1% gains, ending just shy of the 24,700 mark.

Mehul Kothari's stock recommendations

Speaking on the outlook of the Nifty 50 index, Mehul Kothari, Deputy Vice President of Technical Research at Anand Rathi, said, "We witnessed a bounce in the Nifty 50 index; however, participation from the broader markets remained minimal — a point of concern. There is still no meaningful follow-up buying in individual stocks. On the upside, a move above 24,700 would confirm a decent market pullback. However, if the index slips below 24,350, we expect it to retest the 24,000–23,800 zone, where the 200 DEMA and 200 DSMA are placed. This could potentially be the final leg of the correction, as we have started witnessing positive divergence in the RSI on the intraday charts, while on the daily scale, the RSI is approaching its support zone."

The Anand Rathi expert said that recovery can be expected only if the index decisively moves above 24,600–24,700, which could then trigger a relief rally. For now, traders should remain light and avoid taking any aggressive bets.

On the outlook of the Bank Nifty index, Mehul Kothari said, "Bank Nifty underperformed, with hardly any considerable recovery in the index. We are witnessing a triangle formation on the intraday charts of the Nifty Bank index, which could evolve into a bearish pennant pattern. For this to be confirmed, the index must break down below 55,000 on a closing basis — in which case, we could see further sell-off in the index. On the contrary, a move above 55,600 on a daily closing basis would confirm a triangle breakout and negate the bearish pennant pattern, potentially leading to some recovery in the index."

Stocks to buy or sell

Regarding stocks to buy on Monday, Mehul Kothari of Anand Rathi recommended these three buy-or-sell stocks: IRB Infrastructure, Edelweiss Financial Services, and Bank of India.

1] IRB Infrastructure: Buy at ₹45, Target ₹49, Stop Loss ₹43;

2] Edelweiss Financial Services: Buy at ₹96, Target ₹102, Stop Loss ₹93; and

3] Bank of India: Buy at ₹113, Target ₹119, Stop Loss ₹110.

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