Stocks to buy under ₹200: The Indian stock market extended the rally on Friday for the fourth consecutive session and ended with decent gains, led by largely positive global cues.
The Sensex gained 303.03 points, or 0.36%, to close at 84,058.90, while the Nifty 50 ended 88.80 points, or 0.35%, higher at 25,637.80. The Bank Nifty index rallied 237.20 points, or 0.41%, to settle at 57,443.90.
For the week, Sensex and Nifty 50 rallied 2% each, while the Bank Nifty index surged 2.12%.
Stock Market Outlook
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi said that the Indian stock market rally was primarily driven by easing geopolitical tensions between Iran and Israel, which improved investor sentiment. Broader markets also participated strongly in the upmove.
The Nifty Smallcap 100 index surged over 4%, while the Nifty Midcap 100 gained more than 2%, indicating renewed risk appetite among investors.
“After a consolidation of more than a month, Nifty has finally given a breakout above 25,300, triggering an extended move on the upside. For now, our previous cautious or bearish stance is on hold, and we will watch how things develop in the coming sessions. Going ahead, the zone of 25,700 – 25,900 may act as resistance, and if this gets taken out, Nifty 50 could head towards a new all-time high,” Kothari said.
However, any close below 25,300 would be considered a breakout failure, and in that case, we will revert back to our cautious stance. The structure looks bullish, but there is still some uncertainty, so the advice is to stay light and avoid overcommitting, he added.
Bank Nifty Outlook
Bank Nifty surged over 2% this week, comfortably crossing the 57,000 mark and hitting a new high near 57,500.
“On the surface, the structure looks quite positive, but a closer look at the long-term charts reveals a major hurdle — a rising trendline resistance placed around 58,000 – 58,200. If this level doesn’t get taken out, Bank Nifty could betray the bulls, leading to possible reversals. Hence, it makes sense to hold back from aggressive bets for now and wait for clarity,” said Kothari.
On the downside, immediate support is at 56,500, and a break below this could trigger some profit booking.
Mehul Kothari’s stock recommendations
Regarding stocks to buy under ₹200, Mehul Kothari of Anand Rathi recommended buying these three buy or sell stocks: Edelweiss Financial Services, Zee Entertainment Enterprises and CESC shares.
1] Edelweiss Financial Services: Buy near ₹114; Target Price: ₹123; Stop Loss: ₹109
2] ZEEL: Buy on dips near ₹142; Target Price: ₹152; Stop Loss: ₹137
3] CESC: Buy near ₹172; Target Price: ₹182; Stop Loss: ₹167
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.