Stocks to buy under ₹200: While the Indian stock market faced some selling pressure on Friday, it still managed to record the best gains in seven months in October. Corporate earnings revival, easing valuation concerns which drew in , and hopes of a trade deal with the US, bolstered equity market bulls.
The Indian benchmark index , amid a selloff in bank stocks. However, for the month, Nifty 50 and the BSE Sensex gained 4.5% and 4.6%, respectively, and were just 2% below their all-time highs reached in September 2024.
All 16 major sectors posted gains for the month. The broader small-caps and mid-caps rose 4.7% and 5.8%, respectively.
Stock market outlook
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, believes that last week’s market action signalled indecision among market participants and a likely exhaustion following a steep run of the last few days.
“The week gone by witnessed a largely subdued move as the Nifty traded within a narrow band of 26,100–25,700, reflecting indecision among market participants after recent volatility. On the daily chart, a double top formation has developed near the 26,100 zone, indicating potential exhaustion of the short-term uptrend. Adding to this caution, the hourly MACD has shown a negative divergence, suggesting weakening momentum and the possibility of a short-term pullback,” said Kothari.
Commenting on the , Kothari said, “A decisive close below 25,700 may invite further profit booking, potentially dragging the index toward 25,500, which acts as the next key support. On the flip side, if the index manages to sustain above 25,800, it could trigger a recovery toward 26,100 once again, keeping the range-bound structure intact.”
Going forward, he expects 25,700 to act as an immediate support, while 25,500 holds significance as a major support level, aligning with the previous weekly swing high — a zone where buyers are likely to re-enter the market. On the higher side, 26,100 remains a strong resistance, and a breakout above this level would be required to resume bullish momentum, he added.
Overall, Kothari said the market setup suggests consolidation with a mildly negative bias. He advised traders to remain cautious near resistance zones and look for buying opportunities only near the mentioned support areas unless the index decisively breaks above 26,100.
On the outlook for the , Anand Rathi analyst said, “The Nifty Bank index traded in a narrow range between 57,600 and 58,500, indicating consolidation after the recent rally. On the daily chart, a double top formation is visible near 58,500, suggesting stiff resistance at higher levels. However, no significant weakness is evident on indicators yet, implying that a sideways movement may continue in the coming week. For now, 57,500 acts as immediate support, followed by a stronger base near 57,000, while 58,500 remains the key resistance to watch. A breakout above this level could lead to further upside, whereas a breakdown below 57,500 may trigger mild profit booking.”
Given this setup, he maintains a cautious view on Bank Nifty and advises avoiding fresh long positions at elevated levels. “Traders should wait for a dip toward support zones before considering fresh buying opportunities. Overall bias remains neutral with a range-bound outlook,” Kothari opined.
Mehul Kothari’s stock recommendations today
Regarding stocks to buy on Monday, Mehul Kothari of Anand Rathi recommended these three buy-or-sell stocks: , and .
1. Union Bank: Buy at ₹149 | Target price: ₹160 | Stop loss: ₹143
2. Gujarat Pipavav Port: Buy at ₹166 | Target price: ₹178 | Stop loss: ₹159
3. Tata Steel: Buy at ₹182 | Target price: ₹193 | Stop loss: ₹176
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.