Stocks to buy in short-term: Indian benchmark indices ended a choppy trading session on Friday with modest losses as investors assessed the Reserve Bank of India’s latest economic projections alongside a series of measures aimed at attracting foreign capital and supporting the rupee.
As widely anticipated, the RBI left the repo rate unchanged at 5.25%. However, the central bank highlighted risks to both growth and inflation stemming from the prolonged conflict in West Asia, elevated crude oil prices and ongoing global supply-chain disruptions, reinforcing concerns about a stagflationary environment.
The RBI also revised its FY27 growth forecast downward to 6.6% from 6.9% projected in the April policy review, while raising its inflation estimate to 5.1% from 4.6%.
Amid this backdrop, the BSE Sensex settled at 74,243, down 117 points or 0.16%, while the NSE Nifty 50 closed 49.85 points, or 0.21%, lower at 23,366.70. The benchmark indices have now ended lower in three of the last five trading sessions and have declined 0.80% over the period, extending their losing streak to a second consecutive week.
Global crude oil benchmark Brent crude climbed 2.3% to trade around $104.7 per barrel as geopolitical tensions and uncertainty surrounding the US-Iran negotiations kept energy markets volatile.
Stock Market Outlook
Levels to Watch: 23,800 – 24,100/23,300 – 23,100
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, noted that the Nifty 50 traded in a broad range of 23,700–23,100 during the week, witnessing heightened volatility amid persistent FII selling, geopolitical tensions, crude oil price fluctuations, and caution ahead of the RBI policy decision.
While the index attempted a recovery during the week with selective buying in sectors such as IT, the overall sentiment remained subdued. The Nifty eventually ended the week near the 23,400 mark, closing approximately 0.77% lower than the previous week’s close. Domestic institutional buying provided some support, but the broader market largely remained range-bound. The week was characterized by stock-specific and sectoral action rather than a broad-based rally, reinforcing the view that the market continues to be a stock-picker’s market, stated the expert.
As anticipated in our previous outlook, the 23,800 zone once again acted as a strong hurdle, preventing the Nifty from sustaining higher levels. The index faced selling pressure from near the resistance zone and gradually drifted lower through the week. Importantly, the decline helped fill the unfilled gap area on the downside, with the Nifty finding support near 23,150, very close to our highlighted 23,100 support zone, he further said.
“From a broader perspective, there is no major change in our view. The crucial 23,300–23,100 support band continues to hold and remains the most important level to watch going forward. As long as this zone remains intact, we believe the broader structure remains constructive and the possibility of an upward move cannot be ruled out. On the upside, 23,800 remains the immediate hurdle for the index. A sustained move above this level can open the doors for a retest of the 24,100 resistance zone, which continues to be the key supply area. Until a decisive breakout is witnessed, the market is likely to remain within a broad consolidation range,” Kothari predicted.
While the near-term price action may continue to test investors’ patience, the fact that the index has once again respected the 23,100 support region is encouraging. The focus now remains on whether buyers can defend this zone and eventually push the index above the 23,800 resistance mark in the coming sessions, he added.
He further pointed out that BANK NIFTY continued to outperform the broader markets during the week and managed to close with marginal gains, despite the volatility witnessed across benchmark indices. While the index faced some profit booking at higher levels, it remained relatively resilient and comfortably outperformed the Nifty on a relative basis.
“There is no major change in our broader view. The breakout above the 54,500 zone remains valid, and the banking index continues to display stronger price structure compared to the broader market. As long as 52,800–53,200 remains protected on the downside, the overall trend continues to favor the bulls. On the upside, 55,500 remains the immediate hurdle to watch. A decisive breakout above this level could trigger fresh momentum and open the doors for a move towards the 56,000–58,000 zone over the coming weeks. Until then, some consolidation within the broader range cannot be ruled out. Overall, we continue to maintain a positive stance on the banking space and expect BANK NIFTY to outperform the broader market going forward, supported by its relatively stronger technical structure,” suggested the expert.
Mehul Kothari’s stock recommendations today under ₹200
Regarding stocks to buy under ₹200, Mehul Kothari recommended these three short-term picks: MRPL, Reliance Power, and GMR Airports.
1] MRPL: Buy near ₹254, Target ₹174, Stop Loss ₹144;
2] Reliance Power: Buy above ₹29, Target ₹34, Stop Loss ₹26.50; and
3] GMR Airports: Buy near ₹101, Target ₹109, Stop Loss ₹97.
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.
