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Mehul Kothari's stock recommendations under ₹200: The Indian stock market ended the week of October 5–9, 2026, on a positive note, with the Sensex gaining 0.78% and the Nifty rising 0.44%, snapping an eight-week losing streak—the longest in 25 years. Friday’s sharp rebound saw the Sensex surge 879 points (1.23%) to 72,472.33, while the Nifty jumped 289 points (1.30%) to 22,520.45. The recovery was led by strong buying in IT stocks following TCS’s encouraging Q2 results, alongside gains in FMCG, banking, auto and broader mid-cap stocks. However, persistent FII outflows, elevated crude oil prices near $100–$103 per barrel and concerns over tighter monetary conditions continue to weigh on sentiment, keeping the sustainability of the recovery in focus.
After Thursday’s brutal sell-off, when NIFTY plunged over 400 points and briefly broke the crucial 22,200 support, Friday’s sharp rebound of nearly 300 points, with the index closing around 22,500, provides the first signs that the potential bottoming process may have started. Importantly, our earlier observation of a TRIPLE BULLISH DIVERGENCE on the RSI across NIFTY 50, NIFTY 500, NIFTY MIDCAP 100 and NIFTY MIDCAP 150 remains significant. This indicates that despite the fresh panic and weakness in prices, downside momentum is not confirming the same deterioration, increasing the possibility of a meaningful reversal.
Speaking on the outlook for the Nifty 50 index, Mehul Kothari of Anand Rathi said, for the 50-stock index, the 22,200–21,800 zone remains a crucial potential bottoming zone, and Friday’s recovery offers some early encouragement that this divergence could play out. However, the rebound needs to sustain and gain momentum to confirm a broader recovery. On the upside, 22,800 remains the immediate and crucial hurdle, and a sustained move above this level would provide stronger confirmation of improving sentiment and open the door for a larger recovery. While volatility may persist, the combination of deeply oversold conditions and bullish divergence makes the risk-reward increasingly favourable for a rebound.
“We remain hopeful that the worst of the immediate panic may be behind us, while closely monitoring the key support and resistance levels,” said Mehul Kothari.
On the outlook for the Bank Nifty index, the Anand Rathi expert said, the key benchmark index witnessed a sharp rebound on Friday, surging over 700 points and closing above the crucial 55,200 mark. Importantly, the index had held its key support despite Thursday’s sharp sell-off, and the subsequent recovery has strengthened the near-term technical structure.
“For the Bank Nifty index, 55,500 remains the immediate resistance, and a sustained move above this level could trigger further upside and extend the ongoing recovery. On the downside, support has now shifted higher to 54,300, which will be crucial to monitor. As long as Bank Nifty sustains above this support, the near-term outlook remains positive, with a decisive breakout above 55,500 likely to reinforce bullish momentum,” said Mehul Kothari.
Regarding stocks to buy, Mehul Kothari recommended these three stocks under ₹200: Vodafone Idea, Motherson Sumi, and IDFC First Bank.
1] Vodafone Idea: Buy near ₹13 | Target ₹15 | Stop Loss ₹12;
2] Motherson Sumi: Buy above ₹34 | Target ₹38 | Stop Loss ₹32; and
3] IDFC First Bank: Buy above ₹80 | Target ₹85 | Stop Loss ₹71.50.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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