Stocks to buy under ₹200: Finally, there was some respite for the bulls during the week that passed, as the domestic markets witnessed a recovery following the RBI policy. The RBI monetary policy triggered a swift rebound in banking stocks, which in turn lifted overall market sentiment. As a result, the NIFTY 50 spot recovered from the lows of 24,600 and ended the week near the 24,900 mark, posting a gain of around 1%. Meanwhile, the broader markets outperformed as the MIDCAP and SMALLCAP indices surged nearly 2% during the week.
Stock market outlook
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, believes the Indian stock market is not out of the woods until the Nifty 50 index sustains above the crucial 25,000 levels. Mehul Kothari of Anand Rathi said the Nifty 50 index may rise to 25,300 in the near term once it decisively breaks above 25,000.
Speaking on the outlook of the Nifty 50 index, Mehul Kothari of Anand Rathi said, “The Nifty 50 index was oversold, resulting in a bounce from the support zone of 24,600–24,500. However, we are still not out of the woods. For the index to rise further and confirm a base, it needs to sustain a closing price above 25,000 for several consecutive sessions. In such a scenario, we could witness short covering, which may push the index towards 25,200–25,300, a decisive hurdle. On the downside, there is a trendline support near 24,500, while 24,400 marks the previous swing low. The market is expected to find support here in the event of any downside, potentially forming a zone for renewed buying. Traders are advised to remain watchful, as we are still in the middle of the riddle.”
On the outlook of the Bank Nifty index, Nehul Kothari said, “Most of the credit for the market’s recovery goes to the NIFTY BANK index, which surged over 2% during the week. During the process, it managed to close above 55,500. Technically, we are witnessing a trendline breakout in the index, but to confirm a bottom formation, it needs a close above 55,800. If this happens, we can expect further outperformance in the banking index. On the downside, support is placed in the 55,000–54,500 zone.”
Mehul Kothari’s stock recommendations today
Regarding stocks to buy under ₹200, Mehul Kothari of Anand Rathi recommended these three buy-or-sell shares: SPIC, MRPL, and HFCL.
1] SPIC: Buy at ₹95, Target ₹104, Stop Loss ₹91;
2] MRPL: Buy at ₹143, Target ₹158, Stop Loss ₹135; and
3] HFCL: Buy at ₹76, Target ₹83, Stop Loss ₹72.
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.
