The Indian stock market experienced a volatile week ending August 21, 2026, with benchmark indices initially declining before a sharp recovery on Thursday. Mehul Kothari of Anand Rathi suggests buying opportunities in select stocks under ₹200, despite ongoing market pressures from high crude oil prices and geopolitical concerns.
The Nifty 50 index extended its losing streak to seven sessions due to elevated crude oil prices near $93–94/barrel, rising global bond yields, and geopolitical tensions. However, a sharp rebound on Thursday saw the Sensex gain 628 points and the Nifty 50 rise by 154 points, driven by broad-based buying across IT, realty, FMCG, and financial sectors. This recovery was supported by easing US bond yields, a stronger Indian Rupee, and improved risk appetite, with Foreign Institutional Investors (FIIs) turning net buyers.
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, maintains a 'Buy on Dips' stance for the Nifty 50 index as long as it remains above 23,600. He identifies the 24,100–24,000 zone as strong support on any decline, with a sustained breakout above 24,300 potentially triggering further momentum towards an immediate target of 25,000.
“The Nifty 50 index has turned higher from the 24,000 mark, which is backed by multiple technical supports, including a daily gap area, rising trendline and the 61.8% Fibonacci retracement of the previous rise.”
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi
For the Bank Nifty, Kothari notes that the index is consolidating within a symmetrical triangle formation, indicating potential for a directional move. A decisive breakout above 58,200 could confirm an upside breakout, while a break below 57,000 would signal further weakness.
Kothari recommends buying NCC near ₹145 with a target of ₹160 and a stop loss of ₹138, Finolex Industries near ₹160 with a target of ₹168 and a stop loss of ₹156, and Nocil near ₹166 with a target of ₹178 and a stop loss of ₹160.
“A sustained move above this zone would strengthen the momentum towards 25,000. Overall, we remain constructive and believe dips towards key support levels should be viewed as buying opportunities as long as the broader structure remains intact.”
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi
Background
The Indian stock market's recent volatility is attributed to external factors such as crude oil prices and geopolitical tensions. However, the market's ability to rebound suggests underlying resilience, with technical indicators providing guidance for investors.
Looking ahead, investors should monitor key support and resistance levels in the Nifty 50 and Bank Nifty indices. Mehul Kothari's stock recommendations offer potential opportunities for gains, provided the broader market structure remains intact.
