Stocks to buy under ₹200: August turned out to be a painful month for the Indian stock market, as investors booked profits amid the tariffs imposed by US President Donald Trump on India and weak earnings momentum.
BSE Sensex closed 1.7% lower for the month, while its NSE counterpart, Nifty 50, lost 1.4%. This was the second straight monthly loss for the benchmark indices after a 3% decline in July.
The damage was even more stark in the broader markets as the small-cap and mid-cap indices slid 4.1% and 2.9%, respectively.
Stock market next week
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, said that August turned out to be highly volatile for the domestic markets.
“In the first week, Nifty slipped towards the 24,350 mark, but soon staged a recovery. Mid-month, the Prime Minister’s Independence Day speech and GST-related announcements triggered a sharp rally, lifting the index beyond the 25,000 milestone to test the 25,150 level. However, the euphoria was short-lived as the index faced a one-sided corrective phase, dragging it back towards the 24,400 zone,” Kothari added.
Speaking on technical levels for Nifty 50, Kothari said that above 24,600, we witnessed a sharp relief rally in the markets. However, the index got stuck exactly near the 25,150 mark, which coincides with the 61.8% Fibonacci retracement of the entire fall from 25,600 to 24,300, he added.
“Thereafter, the Nifty reversed sharply from 25,150 and slipped lower. On the daily chart, it went on to fill the gap towards 24,600 and has now drifted closer to the 24,400 mark,” the Anand Rathi analyst opined.
Commenting on the outlook for Nifty 50 today, Mehul Kothari of Anand Rathi, said that at this juncture, Nifty is hovering near a critical support zone around 24,350 (previous swing low).
“A close below this level could trigger an extended decline towards the 24,200–24,000 band, which coincides with the placement of the 200 DEMA and 200 DSMA. Beneath this, the next important demand zone lies around 23,800, which in our view could act as the worst-case scenario, from where meaningful buying interest may emerge. This zone can turn into a buying opportunity, but only on confirmation. Hence, traders are advised to maintain a wait-and-watch approach at current levels rather than attempting premature bottom-fishing. On the flip side, any close above 24,800 would bring much-needed relief for the bulls and could pave the way for a recovery,” the technical analyst said.
Meanwhile, he added that the Bank Nifty was the real culprit in August, as it slipped over 4% during the month.
“The index is now hovering near the 53,500 mark, which coincides with the placement of its 200 DEMA, while around 53,000 lies the 200 DSMA. Interestingly, it is also trading close to the 100% extension of its previous move, thereby completing an AB=CD harmonic pattern. Hence, there is a ray of hope that Bank Nifty might stabilise in the coming week. However, a close below 53,000 could trigger further panic in the banking space. On the upside, the immediate hurdle is placed around the 54,300 mark, and only a sustained move beyond this would signal any meaningful recovery,” he said.
Mehul Kothari’s stock recommendations under ₹200
Regarding stocks to buy under ₹200, Mehul Kothari of Anand Rathi recommended buying IOB, YES Bank and Devyani International on Monday.
1. IOB: Buy between ₹38-37 for a target price of ₹42 and a stop loss of ₹36
2. YES Bank: Buy between ₹19.3-19 for a target price of ₹22 and a stop loss of ₹17.5
3. Devyani International: Buy between ₹175-173 for a target price of ₹195 for a stop loss of ₹165.
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.
