Stocks to buy under ₹200: The Indian stock market witnessed high volatility last week, but ended on a positive note, marking the second consecutive week of gains after a sharp correction phase. The Nifty 50 index started the week with a downside gap, slipping towards the 23,500 zone, but strong buying at lower levels led to a sharp recovery throughout the week. The index gradually moved higher, eventually reaching a high near 24,400 and closing above 24,300, indicating sustained strength.

Overall, the weekly gains were over 1%, reflecting a gradual return of bullish momentum after the recent sell-off. The recovery was supported by short-covering, selective buying, and improving sentiment, even as global cues and macro factors remained mixed.

Outlook for the Indian stock market today

Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, believes early signs of negative divergence are beginning to appear on the hourly charts of the Nifty 50 index. The Anand Rathi expert said that a short-term pullback towards the 23,600–23,700 zone cannot be ruled out.

Speaking on the outlook for the Nifty 50 index, Mehul Kothari of Anand Rathi said the index is now approaching a crucial resistance zone of 24,300–24,500, where profit booking could emerge. From a technical perspective, the recent rally has been largely one-sided, and early signs of negative divergence are emerging on the hourly charts. This suggests that momentum may be slowing, even as prices continue to edge higher. As a result, a short-term pullback towards the 23,600–23,700 zone cannot be ruled out.

Despite the possibility of a near-term correction, the broader market structure remains firmly bullish, with the overall trend favouring buyers, supported by strong price action and underlying sentiment.

“In this context, investors and traders are advised to adopt a ‘buy on dips’ strategy, with accumulation near the 23,600–23,700 support zone offering a favourable risk-reward setup, while closely monitoring the 24,300–24,500 resistance zone for any signs of rejection or breakout,” Mehul Kothari of Anand Rathi added.

On the outlook for the Bank Nifty index, Mehul Kothair said the index is now approaching the 61.8% retracement of the recent decline, placed in the 57,200–57,500 zone, which is likely to act as strong resistance/hurdle in the near term. From a technical standpoint, this zone becomes crucial, and any signs of rejection here could trigger a short-term pullback.

“On the downside, 56,000 acts as immediate support, and a decisive breach below this level would confirm the onset of a pullback, potentially dragging the index back towards the 54,500 mark,” said Kothari.

Mehul Kothari’s stock recommendations today

Regarding short-term stock picks, Mehul Kothari of Anand Rathi recommended these three buy-or-sell stocks: IRB Infrastructure, GMR Airports, and MRPL.

1] IRB Infrastructure: Buy above ₹22.75, Target ₹25, Stop Loss ₹21.60;

2] GMR Airports: Buy at ₹95, Target ₹101, Stop Loss ₹92; and

3] MRPL: Buy at ₹178, Target ₹198, Stop Loss ₹168.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.