Stocks Under ₹200 to Watch: Anand Rathi’s Mehul Kothari Recommends Three Buys for This Week
Stocks under ₹200 to buy this week: Anand Rathi’s Mehul Kothari recommends Indian Oil, Tata Steel, and Lemon Tree Hotels as top picks. Market outlook remains bullish with Nifty eyeing 26,500 amid RBI rate cuts and strong domestic inflows.
Market expert Mehul Kothari recommends Indian Oil, Tata Steel, and Lemon Tree Hotels as top stocks under ₹200 for the week.
Domestic equity markets traded in a narrow range last week, with the Nifty 50 slipping 0.06% and the Sensex edging up 0.01%. Midcap indices underperformed, falling 1.2%. Adding to the market buzz, the RBI surprised investors with a 25 bps rate cut despite strong growth and low inflation indicators.
Market Outlook
- According to Mehul Kothari, Deputy Vice President – Technical Research at Anand Rathi, the Indian market remains firmly positive as long as the Nifty 50 stays above the crucial 26,000–25,800 support zone. He believes the benchmark index could soon reach 26,500, provided it closes decisively above 26,300.
- Kothari highlighted that the week ending December 5 showed resilience despite early volatility. Nifty closed at 26,192 (+0.61%), while the Sensex ended at 85,755 (+0.57%), helped by strong inflows from domestic institutions (+₹8,400 crore) offsetting FII outflows (–₹5,100 crore).
- Rate-sensitive sectors surged following the RBI’s third rate cut of 2025. Banking, auto, realty and NBFC stocks witnessed robust gains, with Bajaj Finance jumping 6.2% during the week.
- He added that Nifty’s recent consolidation has strengthened its multi-year cup-and-handle pattern, signalling an impending breakout. A close above 26,300–26,350 could set up a rally toward 28,000–30,000 by mid-2026.
- Short-term targets remain 26,500–26,700, while dips toward 25,800–25,900 may offer fresh buying opportunities.
Bank Nifty Outlook
Kothari noted that Bank Nifty touched a lifetime high of 59,946 before meeting selling pressure near long-term trendline resistance. The index now faces a tough supply zone at 60,500–61,000, where profit-booking is likely.
Immediate support lies at 58,500–58,000, and a fall below this level could indicate a short-term top. He advised caution on aggressive long buys in banking heavyweights until a clear breakout emerges.
Stocks to Buy Under ₹200
Mehul Kothari has recommended three stocks under ₹200 for short-term trading opportunities:
1. Indian Oil Corporation (IOC) – Buy
Entry: ₹163
Target: ₹170
Stop Loss: ₹159
2. Tata Steel – Buy
Entry: ₹167
Target: ₹176
Stop Loss: ₹163
3. Lemon Tree Hotels – Buy
Entry: ₹165
Target: ₹175
Stop Loss: ₹159
These picks offer favourable risk-reward setups amid a market poised for potential upside.
