Stocks to buy under ₹200: As expected, July 2025 was a month of profit booking and correction for the Indian stock market. The 25,800 zone acted as a formidable hurdle for the Nifty 50 index, and in the absence of any strong positive trigger, the key benchmark index corrected over 1,000 points from the highs. The index ended the month with a loss of nearly 3%, currently hovering below the 24,600 mark. The damage was even more pronounced in the broader markets, where the Smallcap Index plunged around 6% and the Midcap Index declined by 4%. Risk appetite took a hit, and profit booking was visible across sectors.
Stock market next week
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, has consistently highlighted the golden crossover in Nifty 50, where the 50-DEMA crossed above the 200-DEMA — a technically positive development. However, history suggests that a mean reversion often follows such crossovers before the next leg of the uptrend begins. In line with that, the Nifty 50 is approaching its 200-DEMA and DSMA, converging around the 24,200–24,000 zone. Adding to the caution, a bearish candlestick formation is emerging on the monthly chart — and while it‘s still early, this being the first month of such a signal is slightly concerning.
Speaking on the outlook of the Nifty 50 today, Mehul Kothari of Anand Rathi said, “On the daily chart, momentum oscillators are not yet in deep oversold territory, suggesting that the correction might not be over yet. A breach below 24,450 — a key horizontal support — could drag the index further down towards the 24,000 mark, and in a worst-case scenario, even towards 23,800–23,600. These levels could offer a strong mean-reversion opportunity for medium-term investors. On the upside, 25,000 remains a psychological resistance, and only a decisive move above it can revive bullish sentiment. For traders, the approach should remain highly selective and risk-managed — avoid aggressive bottom-fishing and focus only on strong relative strength stocks. This remains a market to survive first, profit later.”
“The Bank Nifty index made a high near 57,600, but as we had cautioned, the 58,000–58,500 trendline resistance zone proved too strong to cross. In line with our view, the index slipped over 2% during July 2025. Bank Nifty is close to its 200 DEMA, just below the 55,000 mark — barely a per cent away from current levels. This zone will be crucial to watch. If the index finds support here, we could see a short-term bounce. On the upside, 56,500 remains a near-term hurdle, but the real test continues to be the 58,000–58,500 zone, where the long-term trendline resistance still looms large,” he added.
Mehul Kothari’s stock recommendations under ₹200
Regarding stocks to buy under ₹200, Mehul Kothari of Anand Rathi recommended buying VRPL, UCO Bank, and IDFC First Bank on Monday.
1] VRPL: Buy at ₹158 to ₹160, Target ₹175, Stop Loss ₹154;
2] UCO Bank: Buy at ₹28 to ₹29, Target ₹34, Stop Loss ₹26; and
3] IDFC First Bank: Buy at ₹67 to ₹68, Target ₹75, Stop Loss ₹64.
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.
