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.