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

Stocks to buy under ₹200: In calendar year 2025, the Indian stock market showed resilience despite multiple headwinds, delivering modest gains amid record FII outflows, muted earnings growth, US-India trade tensions, and a weakening rupee. The Sensex rose ~9% to around 85,200, while the Nifty 50 gained ~10% to about 26,130, marking the tenth consecutive year of positive returns.

Strong domestic institutional and retail buying offset record FII selling of over ₹1.44 lakh crore. While volatility remained elevated for most of the year, a sharp recovery in the final quarter helped indices reclaim their highs after a prolonged period of consolidation. Large-cap stocks outperformed broader markets, and robust domestic liquidity was evident as ₹1.95 trillion was raised through over 365 IPOs, even as Indian equities underperformed several of their Asian peers.

Stock market outlook

Mehul Kothari, Deputy Vice President of Technical Research at Anand Rathi, believes the Indian stock market mood has turned positive after the Nifty 50 index broke decisively above 26,200. Mehul Kotahri of Anand Rathi said the 50-stock index may soon touch 26,500 to 26,600.

Speaking on the outlook of the Nifty 50 index, Mehul Kothari said, "The Nifty 50 index respected the 25,950–25,850 support zone, staged a strong rebound, and has now delivered a decisive breakout above 26,200. Technically, this move confirms a bullish Cup and Handle formation with a pattern projection of around 400 points, suggesting an upside potential towards 26,500–26,600 in the coming sessions, provided current levels are sustained."

"On the broader market front, consistent relative strength has now translated into a Head and Shoulders breakout on the NIFTY 500 index, indicating further upside towards 24,500+ from the current zone of 24,000. For the near term, 26,100 remains an important support for NIFTY; a close below this level would negate the bullish setup. Overall, the focus should remain on select stock-specific opportunities in quality broader market names. At the same time, index positions should be managed with discipline until follow-through emerges above resistance zones," Kothari said.

On the outlook of the Bank Nifty index, Mehul Kothari of Anand Rathi said, "The Bank Nifty index delivered a decisive breakout above the 60,000 mark, confirming a shift in short-term momentum after a prolonged consolidation phase. However, the index is now approaching a crucial long-term rising trendline resistance, which has been in place for several years and is positioned in the 61,000–61,500 zone. This supply zone may not be easy for the bulls to overcome in the first attempt and could lead to near-term consolidation or intermittent profit booking."

"While the broader structure remains positive post the 60,000 breakout, the risk–reward turns less favourable at higher levels, warranting a slightly cautious approach near resistance. As long as Bank Nifty holds above 59,500–59,700, the breakout remains valid; however, a sustained move beyond 61,500 would be required to unlock the next leg of the structural uptrend," said Mehul Kothari of Anand Rathi.

Mehul Kothari's stock recommendations today

Regarding stocks to buy on Monday, Mehul Kothari of Anand Rathi recommended these three buy-or-sell stocks: Welspun Living, UCO Bank, and IOC.

1] Welspun Living: Buy at ₹133, Target ₹138, Stop Loss ₹130;

2] UCO Bank: Buy at ₹30.50, Target ₹34, Stop Loss ₹29; and

3] IOC: Buy near ₹166.50, Target ₹172, Stop Loss ₹162.

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.