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

Stocks to buy under ₹200: The Indian stock market closed the week with modest gains, as investor sentiment oscillated between optimism around renewed India–US trade talks and caution due to ongoing geopolitical uncertainties.

The benchmark indices began on a strong note and sustained early gains, but selling pressure in select heavyweight stocks across sectors gradually dented momentum as the day progressed. The Nifty ultimately ended at 25,694.35, up 0.11%.

Early optimism was fuelled by a sharp rally in IT stocks, led by Infosys after it upgraded its full-year revenue outlook, lifting the broader IT index. Financial and realty stocks also supported the gains, while pharma and energy counters lagged. In the broader market, midcap and smallcap indices finished flat to marginally lower, largely in line with the prevailing trend.

Stock market outlook

Mehul Kothari, Deputy Vice President of Technical Research at Anand Rathi, believes that it was a truncated trading week for Indian stock market marked by volatility, with the Nifty largely consolidating in a narrow range.

Mehul Kothari of Anand Rathi stated that the overall market sentiment remained range-bound amid cautious global cues and the ongoing Q3 earnings season, with investors adopting a selective, stock-specific approach rather than aggressive positioning.

Nifty 50

The index initially slipped below the 25,500 mark, reflecting early pressure, but managed a recovery from lower levels. However, the upside remained capped as Nifty failed to decisively clear the 25,900 resistance zone, eventually closing the week with only a modest change.

Speaking on the Nifty 50 outlook, Kothari said, “ The Nifty remained in consolidation after last week’s failed breakout and sharp reversal, with the index holding above the 25,400 support, which was highlighted as the maximum near-term downside. Importantly, this level was not breached, reinforcing its significance as a strong demand zone. At present, the index is stuck in a well-defined range of 25,400–25,900, reflecting indecision and lack of follow-through on either side. Any decisive breakout above 25,900 could open the door for a fresh upside move, while a breakdown below 25,400 would signal renewed weakness and set the tone for the next leg of the trend. Volatility remains a key variable, with India VIX rebounding to around 11 from recent lows near 9, indicating that complacency is fading and sharp moves cannot be ruled out in either direction. Given this setup, a cautious and selective approach is advised, with traders waiting for clear confirmation before taking aggressive directional positions.”

Bank Nifty

Bank Nifty witnessed a dip towards the 59,000 support, which was protected on a closing basis, followed by a decent recovery towards 60,000.

On the Bank Nifty outlook, he added, “ The upside remains capped as the index now faces an immediate hurdle near 60,500. A sustained move above this level could trigger a short-term pullback, but the broader resistance zone of 61,000–61,500, aligned with the long-term rising trendline, is expected to attract selling pressure. On the downside, 59,000 continues to be a crucial support, and a decisive breakdown below this level could open the door for a move towards 58,000 or lower. Overall, the index remains in a cautious zone, with price action near these key levels likely to dictate the next directional move.”

Stocks to buy next week

Regarding stocks to buy next week, Mehul Kothari of Anand Rathi recommended these three shares: Bank of India, Samvardhana Motherson International, and Indian Oil Corporation.

1] Bank of India: Buy at ₹157, Target ₹165, Stop Loss ₹153

2] Samvardhana Motherson International: Buy at ₹114, Target ₹122, Stop Loss ₹110

3] Indian Oil Corporation: Buy at ₹161, Target ₹170, Stop Loss ₹156

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.