Stocks to buy under ₹200: The Indian stock market’s benchmark indices, Sensex and Nifty 50, staged a smart turnaround in trade on Friday, buoyed by favourable Bihar election results, earnings turnaround and an end to the US government shutdown.
The BSE Sensex ended 84.11 points, or 0.10%, higher at 84,563, while the NSE Nifty went up 31 points, or 0.12%, to settle at 25,910, thus taking their winning run to the 4th session in a row.
Both indices advanced roughly 1.6% over the week. All 16 major sectoral indexes posted weekly gains, and small-cap and mid-cap indices climbed about 1% and 1.5%, respectively.
Stock market outlook
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, said the bulls are firmly back on Dalal Street, with the Nifty 50 poised to cross the 26,000 mark next week.
“The Nifty 50 once again respected the crucial support near 25,300, which also coincided with the 50% Fibonacci retracement of the prior rally. From there, the index staged a strong rebound and marched towards the 26,000 mark. Eventually, Nifty ended the week with healthy gains of over 1.5%, reaffirming the underlying strength in the market,” said Kothari.
Technically, he maintained a bullish stance, and even advised traders to start accumulating index ETFs around the 25,300 levels. “Now, the index is once again approaching the psychological mark of 26,000 along with the key hurdle at 26,277. At the moment, price action suggests that the index is likely to surpass both these levels in the coming week. A sustained move above 26,277 could push the Nifty into uncharted territory, opening the doors for a fresh all-time high near the 26,400 zone,” the Anand Rathi analyst opined.
On the contrary, markets can always witness a shallow pullback after a sharp up-move, Kothari cautioned. “In such a scenario, the 25,700 level would act as a crucial support for the coming week. A decisive breach of this level may lead to profit-booking pressure in the short term.”
The Nifty Bank index also delivered a strong performance during the week, registering gains of over 1%. Kothari believes that the index is now positioned right at the verge of a fresh breakout. “A decisive move above 58,600 would validate a bullish flag–type pattern, potentially setting the stage for a rally towards the 60,000 mark in the near term. On the downside, immediate support for the coming week is placed at 58,000, followed by a stronger support zone near 57,000. These levels are likely to cushion any short-lived dips and maintain the broader bullish structure,” he added.
Mehul Kothari’s stock recommendations
Regarding stocks to buy on Monday, Mehul Kothari of Anand Rathi recommended these three buy-or-sell stocks: Samvardhana Motherson, Castrol India and CESC.
1. Samvardhana Motherson: Buy near ₹110 | Target ₹118 | Stop loss ₹105
2. Castrol India: Buy near ₹192 | Target ₹296 | Stop loss ₹184
3. CESC: Buy near ₹175 | Target ₹181 | Stop loss ₹169
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
