Stocks to Buy Under ₹100: Mehul Kothari of Anand Rathi Recommends These 3 Potential Winners
Mehul Kothari : In a week where the Indian stock market moved largely within a range, the broader indices outshined, offering selective buying opportunities. While benchmark indices like the NIFTY 50 hovered between 24,500 and 25,100, a strong rally was observed in midcap and smallcap stocks—highlighting investor interest in quality names at attractive valuations.
Among the experts closely tracking this market behavior is Mehul Kothari, Deputy Vice President – Technical Research at Anand Rathi, who believes the current scenario is offering niche opportunities, especially in low-priced stocks under ₹100. Amid a surprise 50 basis point rate cut by the RBI, which jolted the Street, banking indices saw a strong rally, and the broader market followed suit.
Stock Market Outlook: Key Technical Levels to Watch
According to Kothari, the NIFTY 50 showed resilience by forming a double bottom near 24,450—an early sign of strength. However, the index is now approaching a critical resistance zone of 25,100 to 25,300, aligning with the Golden Ratio retracement level.
“This resistance zone is likely to invite profit booking. Also, if NIFTY crosses above 25,100, it may trigger a fresh negative divergence in RSI, signaling potential near-term weakness,” Kothari explains.
He continues to advise caution in this resistance area and maintains a strategy of booking profits. A decisive close above 25,300, however, would shift the market structure bullishly.
- Immediate support: 24,700
- Crucial support: 24,450
- Resistance zone: 25,100 – 25,300
- Key trigger: Sustained move above 25,300 for a bullish reversal
Bank Nifty Outlook
The Bank Nifty index had a stellar week, climbing nearly 1.5%, and touched a fresh all-time high near 56,700, driven by the RBI rate cut. Kothari expects follow-through momentum, possibly pushing the index towards 57,000–57,500 in the coming sessions.
- Upside Target: 57,000–57,500
- Support Zone: 55,500 (Friday’s low)
3 Stocks to Buy Under ₹100: Mehul Kothari’s Picks
Here are the top three recommendations under ₹100 from Mehul Kothari for short-term gains:
| Stock Name | Buy Price | Target Price | Stop Loss | Sector | CMP (Approx) | Reason to Buy |
|---|---|---|---|---|---|---|
| Motherson Sumi Wiring | ₹60.50 | ₹64 | ₹58.80 | Auto Ancillaries | ₹61 | Strong technical setup, low-risk entry point |
| GMR Airports Infrastructure | ₹86 | ₹90 | ₹84 | Infrastructure / Aviation | ₹86.5 | Growth visibility, nearing breakout |
| NHPC | ₹89 | ₹93 | ₹87 | Power / PSU | ₹89.2 | Safe PSU play, supported by stable cash flows |
Why These Stocks Are Worth Watching
- Motherson Sumi Wiring India Ltd.: A reliable name in the auto components sector, the stock has been forming a strong base around ₹60. With improving demand in the automotive industry, Motherson Sumi Wiring is positioned for a breakout with minimal downside risk.
- GMR Airports Infrastructure: Benefiting from the growing domestic and international air travel, GMR is well-placed to capitalize on the post-pandemic aviation recovery. A move past ₹86 could lead to quick gains toward ₹90.
- NHPC: A steady PSU performer with government backing, NHPC has seen consistent demand due to its presence in the clean energy sector. Technical charts suggest accumulation near ₹89 with a short-term potential up to ₹93.
Conclusion
The Indian stock market is at a pivotal juncture, with broader participation signaling strong undercurrents. Investors looking to capitalize on value buys below ₹100 can consider the above stocks with strict adherence to stop-loss levels. While NIFTY’s range-bound movement suggests caution, sector-specific plays like auto components, infrastructure, and PSUs offer actionable setups.
Q&A: Key Takeaways From the Article
Q1. Why are broader markets like Midcap and Smallcap outperforming?
A: Investors are showing renewed interest in value stocks, especially in sectors like auto ancillaries and infrastructure, as large-cap stocks consolidate.
Q2. What is the technical outlook for NIFTY 50?
A: NIFTY is currently facing resistance between 25,100 and 25,300. Only a decisive close above 25,300 can signal a bullish reversal. Otherwise, caution is advised.
Q3. What makes Motherson Sumi Wiring a good buy?
A: It is technically forming a base near ₹60, offering a low-risk buying opportunity with a near-term target of ₹64.
Q4. Is GMR Airports a safe bet under ₹100?
A: GMR is poised to benefit from the aviation boom and is nearing a breakout, making it an attractive short-term pick.
Q5. How reliable is NHPC as an investment?
A: Being a PSU and a clean energy play, NHPC offers stability. Its technical chart suggests accumulation, making it suitable for cautious investors.
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