Stocks to buy under ₹200: The Indian stock market took a breather this week and entered a mild consolidation phase after a strong multi-week rally. The benchmark Nifty 50 index witnessed bouts of profit booking and ended the week marginally in red.
Analysts believe this price action reflects cautious stance, as the frontline indices – Sensex and Nifty 50 – digest their recent gains near key resistance zones.
On Friday, the Sensex surged 769.09 points, or 0.95%, to close at 81,721.08, while the Nifty 50 ended at 24,853.15, up 243.45 points, or 0.99%. The Bank Nifty rallied 456.95 points, or 0.83%, to settle at 55,398.25. Despite the rally, both the benchmark indices registered a weekly loss of nearly a percent.
Stock market next week
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi believes that after rallying nearly 3,300 points from the April lows, Nifty 50 finally saw a much-needed pause, slipping around 600 points from the recent high of 25,050 to revisit the 24,450 zone.
Nifty 50 Outlook
Nifty 50 index is still near the key 161.8% Fibonacci extension and the Golden Crossover zone (50-DEMA above 200-DEMA) lies considerably lower, around 23,800 – 23,500. This keeps the risk of a mean reversion alive.
“We continue to maintain our cautious stance. The level of 25,300 remains an immediate hurdle, and now a breach below 24,450 could trigger a more meaningful corrective move. In the current setup, we prefer booking profits on rise over buying the dip, as this pullback has the potential to extend deeper rather than being just a shallow correction,” said Mehul Kothari.
Bank Nifty Outlook
Bank Nifty index reversed sharply from the key resistance of 55,700, making a high of 55,695 and slipping to 54,576, right near our support of 54,400. The index continues to respect these levels well, Kothari said.
According to him, for the coming week, 55,700 – 56,200 remains a stiff hurdle for Bank Nifty index, while 54,400 is the key support. A breakdown below this may extend the fall towards 53,800 – 53,500. Bias remains cautious unless 55,700 is taken out decisively, he added.
Mehul Kothari’s stock recommendations
Regarding stocks to buy on Monday, Mehul Kothari of Anand Rathi recommended three buy or sell stocks. The three stocks to buy under ₹200 are Everest Kanto Cylinder, Bajaj Hindusthan Sugar and Ola Electric Mobility shares.
1] Everest Kanto Cylinder: Buy around ₹137; Target Price: ₹146; Stop Loss: ₹132
2] Bajaj Hindusthan Sugar: Buy near ₹23.50; Target Price: ₹25.50; Stop Loss: ₹22.20
3] Ola Electric Mobility: Buy near ₹52.50; Target Price: ₹56; Stop Loss: ₹50.50
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.
