Stocks to buy under ₹200: The Indian stock market paused its recent rally during Friday’s session on May 16, following a seven-month high. Weak global cues and a sharp downturn in domestic technology stocks dampened overall sentiment.
The Nifty 50 slipped by 42 points, or 0.17%, to close just above the 25,000 level at 25,019, while the Sensex declined by 200 points, or 0.24%, ending the day at 82,330. Despite the day’s dip, both indices posted strong weekly gains of over 4%.
Stock market next week
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, believes that the Indian stock market is currently witnessing a bullish Golden Crossover on the daily chart, where the 50-DEMA has crossed above the 200-DEMA — a strong long-term bullish signal. However, historical patterns suggest that during the initial phase of such crossovers, prices often undergo mean reversion before sustaining the trend. Presently, both moving averages are placed in the 23,800–23,500 zone, which is still some distance from the current market level.
Speaking on the outlook of the Nifty 50 index, Mehul Kothari of Anand Rathi said, “NIFTY is now hovering near the 161.8% Fibonacci extension of the previous move — a key Golden Ratio that often acts as a potential resistance. Given these signals, we are adopting a cautious stance for the coming weeks. On the upside, 25,300 could act as an immediate hurdle. A failure to surpass this level may lead to profit-booking. In such a scenario, 24,800–24,500 would be the immediate support zone on the downside. Traders are advised to trail their positions with tight stop losses and avoid aggressive longs at current levels, preferring dips for fresh entries.”
On the Bank Nifty outlook, he said, “ NIFTY BANK is proving to be a tough nut for bears, with the index maintaining strong momentum. It’s currently on the verge of a breakout, and a move above 55,700 could open the gates for a fresh high above 56,200, which in turn may fuel further upside in NIFTY as well. However, failure to clear 55,700 might lead to some profit booking. On the downside, key support is placed at 54,400, which should hold unless broader sentiment turns weak.”
Mehul Kothari’s stock recommendations
Regarding stocks to buy on Monday, Mehul Kothari of Anand Rathi recommended these three buy or sell stocks — NMDC, Edelweiss Financial Services, Gail (India).
1] NMDC: Buy near ₹70, Target ₹75, Stop Loss ₹67;
2] Edelweiss Financial Services: Buy near ₹87.50, Target ₹92, Stop Loss ₹85; and
3] Gail (India): Buy near ₹186, Target ₹191, Stop Loss ₹183.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
