Brokerage Firm Anand Rathi Suggests Three Stocks Below ₹200 for Investment

Indian Stock Market Sees Second Consecutive Week of Gains

The Indian stock market experienced high volatility last week, but ultimately 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. However, 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.

Nifty 50 Index Approaches Crucial Resistance Zone

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The Nifty 50 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.

According to Mehul Kothari, a short-term pullback towards the 23,600–23,700 zone cannot be ruled out. Despite this possibility, the broader market structure remains firmly bullish, with the overall trend favouring buyers, supported by strong price action and underlying sentiment.

Market Outlook and Stock Recommendations

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.

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On the outlook for the Bank Nifty index, Mehul Kothari 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.

Mehul Kothari's recommended stocks for short-term investment are IRB Infrastructure, GMR Airports, and MRPL. For IRB Infrastructure, investors can buy above ₹22.75 with a target price of ₹25 and a stop loss of ₹21.60. For GMR Airports, investors can buy at ₹95 with a target price of ₹101 and a stop loss of ₹92. For MRPL, investors can buy at ₹178 with a target price of ₹198 and a stop loss of ₹168.