Top Stocks Under ₹200: Expert Recommendations
The Indian stock market experienced a turbulent week, concluding with significant losses as the Sensex fell by approximately 961 points, reflecting a decline of 1.17%. The Nifty 50 also faced challenges, dropping over 317 points to settle near 25,178. This downturn resulted in a loss of ₹3 to ₹5.5 lakh crore in market capitalization. Despite some mid-week positivity, heavy selling pressure in the final session overshadowed earlier gains.
Broader market indices, including MidCap and SmallCap, underperformed, declining by 1-1.3%. Factors such as weak global cues, geopolitical tensions, ongoing selling by foreign institutional investors (FIIs), and sector-wide weaknesses in financials, realty, auto, FMCG, and energy contributed to the market's cautious sentiment. Overall, the market seems to be consolidating amid persistent global uncertainties.
Mehul Kothari, Deputy Vice President of Technical Research at Anand Rathi, suggests that the Indian stock market might be nearing the end of its correction phase. He indicates early signs of selling exhaustion near critical support levels. A weak opening could help fill the remaining gaps and test the support zone, setting the stage for potential stabilization.
Regarding the Nifty 50 index, Kothari points out that after failing to hold above the 25,800–26,000 resistance zone, the index is currently near 25,200, close to the crucial 25,100 support area. A decline below this support could necessitate a reassessment of the bullish trend. However, if the 25,100 level holds, it may indicate a healthy pullback within the broader upward trend.
On the Bank Nifty index's outlook, Kothari notes that it remains in a consolidation phase, with resistance around the 61,500–62,000 zone. The index currently hovers around 60,500, with the 59,800–60,000 range acting as strong support. As long as this support holds, the index is expected to remain within this range.
For investors seeking opportunities, Kothari recommends three stocks under ₹200: Central Bank of India, Shree Renuka Sugars, and Welspun Living. He suggests buying Central Bank of India at ₹40-₹38, aiming for targets of ₹44 and ₹48, with a stop-loss at ₹36.50. For Shree Renuka Sugars, he advises buying at ₹24 with a target of ₹26.50 and a stop-loss at ₹22.80. Lastly, for Welspun Living, he recommends a buy at ₹125, targeting ₹135, with a stop-loss at ₹119.
Investors are reminded that these recommendations are for educational purposes, and they should consult certified experts before making investment decisions.
