Mehul Kothari Stock Recommendations under ₹200: The Indian equity market ended the September 14–18 week on a weak note, extending its losing streak to six consecutive weeks, the longest since 2020. The holiday-shortened week saw the Sensex decline 0.65% to 74,294.96, while the Nifty fell 0.22% to 23,346.40.
Investor sentiment remained cautious as crude oil prices stayed above $100 a barrel amid Middle East geopolitical tensions. Continued FII selling, concerns over higher global interest rates and liquidity shifting towards strong IPO demand, including the mega NSE issue, added to the pressure.
The weakness was broad-based, with 10 of 16 major sectors ending the week in the red. IT stocks, including TCS, along with several Tata Group counters, remained under pressure.
Although the market staged a recovery during the final three sessions on bargain buying and some easing in crude prices, the rebound was insufficient to offset the losses recorded earlier in the week.
Stock market | Mehul Kothari of Anand Rathi’s prediction
LEVELS TO WATCHOUT FOR: 23,500 – 23,700/23,000 – 22,800
Indian equities could remain volatile in the near term as persistent selling pressure tests investor confidence and keeps the benchmark indices close to crucial technical support levels. After a prolonged phase of weakness, market participants are increasingly watching whether key support zones can hold and provide a base for recovery.
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, said the Nifty continues to face pressure, with sentiment turning increasingly negative after several weak sessions. However, he noted that investors should focus on important support levels instead of reacting to every market decline.
“The index may still witness one more low around the 23,000 mark, which remains the most important support zone and also coincides with the rising channel support. In our view, this should ideally be the maximum extent of the current correction,” Kothari predicted.
He further pointed to technical indicators suggesting that the selling momentum may be becoming stretched. The daily RSI has fallen to its lowest levels in recent months, while the hourly chart is showing signs of a possible selling climax.
According to Kothari, the 23,000–23,100 zone remains the key area to monitor for the Nifty. While near-term volatility may continue, he believes this range is important for determining the extent of the ongoing correction.
On the upside, 23,700 is the first level that could indicate that immediate selling pressure is beginning to ease. A stronger recovery, however, would require the index to move towards and reclaim 24,500.
Kothari emphasised that patience becomes particularly important during phases of heightened volatility, as markets can witness their sharpest swings when investor sentiment is at its weakest.
Bank Nifty faces pressure near 56,000
Bank Nifty continues to look relatively weaker, according to Kothari, with the index struggling around the 56,000 level. The immediate and crucial support is placed at 55,500, which also corresponds with the previous breakout level.
“The immediate and crucial support remains at 55,500, which also marks the previous breakout level and therefore assumes greater significance. This level needs to hold on a weekly closing basis for the broader structure to remain intact,” said the expert.
Kothari cautioned that a decisive weekly close below 55,500 could intensify selling pressure and raise the possibility of another leg lower. For this reason, he believes the weekly closing level is more important than individual intraday movements.
On the higher side, 57,000 remains the immediate hurdle for Bank Nifty. A sustained move above this level would be the first indication that the prevailing pressure is easing and that the index could be moving towards a more stable phase.
Mehul Kothari’s stock picks under ₹200
Regarding stock picks under ₹200, Mehul Kothari of Anand Rathi has recommended three shares to buy — Castrol India, NHPC, and Vikram Solar.
1] CASTROLIND: Target ₹210 | Stop Loss ₹190;
2] NHPC: Target ₹81.50 | Stop Loss ₹74.50; and
3] VIKRAMSOLR: Target ₹174 | Stop Loss ₹161.
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.
