Stocks to buy under ₹200: Mehul Kothari of Anand Rathi recommends three shares to buy or sell

Stocks to buy under ₹200: After a positive start supported by favourable global cues, the Indian stock market witnessed sharp selling on Friday. This was on account of profit booking, which came in as cross-border tensions between India and Pakistan escalated following the terrorist attacks in Pahalgam, Kashmir. The Nifty 50 index crashed 207 points and closed at 24,039. The BSE Sensex shed 588 points and finished at 79,212. The Bank Nifty index ended 537 points lower at 54,664. All the sectoral indices, barring Nifty IT, are closed in red. Realty and Financial services indices were the top losers, falling by nearly 3% each.

On the positive side, FII buying continued for the seventh consecutive session with inflows of around ₹8,250 crores on Thursday. Further, news flows indicated some softness in the US-China tariff war, while India is expected to be closer to signing a trade deal with the US. Geopolitical developments between India and Pakistan could add volatility to the Indian market over the next few days.

Stock market outlook

Mehul Kothari, Deputy Vice President—Technical Research at Anand Rathi, believes the Indian stock market sentiment turned cautious following news from Kashmir, triggering some panic on Dalal Street. Mehul Kothari of Anand Rathi said a correction was due on the Nifty 50, BSE Sensex, and other Indian indices after the sharp rebound in the Indian stock market post-Trump's 90-day pause on tariffs.

Speaking on the outlook of the Nifty 50 index, Mehul Kothari said, "Technically, the Nifty index was exhibiting multiple negative divergences on the hourly chart, indicating that a corrective move was due. In line with this setup, we witnessed a pullback in the index, which retested the previous breakout zone near 23,800. So far, this key support level has held firm, but a decisive breach below 23,800 may trigger further profit booking, potentially dragging the index towards the 23,500 mark, which coincides with the placement of the 200-day EMA. Conversely, a sustained move above 24,400 would reignite bullish momentum, possibly paving the way for a rally towards the 24,800 – 25,000 zone. Given the ongoing geopolitical tensions, we prefer to wait for clearer signals before becoming aggressive. While the broader structure remains bullish, traders are advised to stay light and manage risk in the near term."

"The Bank Nifty index has been phenomenal over the past few weeks, and this week, it extended its rally towards the 56,000 mark in the initial sessions. However, this move was accompanied by negative divergence, indicating exhaustion and calling for a healthy pullback. In line with this, the index corrected back to the 54,000 zone and ended the week with only a marginal change. A decisive move below 54,000 could lead to further downside towards the 53,000 to 52,500 zone. On the upside, a breakout above 55,500 would likely reignite momentum in banking stocks, bringing bulls back into action," said Kothari.

Mehul Kothari's stock recommendations

Regarding stocks to buy under ₹200, Mehul Kothari recommended these three shares buy or sell: CESC, Bandhan Bank, and GAIL India.

1] CESC: Buy around ₹152, Target ₹162, Stop Loss ₹144;

2] Bandhan Bank: Sell on rise around ₹167.50, Target ₹157, Stop Loss ₹172;

3] GAIL India: Buy around ₹185, Target ₹196, Stop Loss ₹178.

Disclaimer: The views and recommendations above, if any, are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.