Stocks to Buy Below ₹100: Mehul Kothari of Anand Rathi Recommends Three Shares for Monday, 23 June 2025

Overview: Budget Buys for Smart Investors

Retail investors looking for high-value opportunities in the sub-₹100 segment received new cues from market expert Mehul Kothari, AVP - Technical Research at Anand Rathi. As Indian equity indices consolidate after hitting record highs, Kothari shared his top three stock picks—two ‘buy’ calls and one ‘sell’—for Monday, 23 June 2025. These stocks, trading under ₹100, offer a mix of technical promise, favorable risk-reward setups, and potential catalysts for short- to medium-term gains.

Market Backdrop: Range-Bound Index, Stock-Specific Opportunities

The benchmark indices have been consolidating after a volatile month marked by global cues, FII activity, and election-related sentiment. The Nifty 50 is hovering near the 23,450 level, while the Sensex is treading around 77,300. Analysts suggest that while broader indices may take a breather, there is notable action in the mid- and small-cap space.

“Retail participation has seen a strong uptick, and under-₹100 stocks are catching traders' interest due to affordability and momentum-driven action,” said Kothari. “The short-term setup indicates stock-specific breakouts rather than sectoral rallies.”

Top 3 Stocks Under ₹100 to Watch on 23 June

1. BHEL (Bharat Heavy Electricals Ltd) – Buy | CMP: ₹98.20 | Target: ₹108 | Stop Loss: ₹92

Rationale:
Kothari has placed a buy call on BHEL, one of India's largest power generation equipment makers, citing a breakout from a bullish flag pattern on the daily chart. The stock has gained nearly 12% over the last five sessions, supported by heavy volumes.

“The RSI is trending upwards, and the MACD crossover confirms the bullish momentum. BHEL looks poised to test ₹108 in the short term,” Kothari noted.

Recent Drivers:
The government’s renewed focus on green hydrogen and thermal upgrades, along with positive quarterly earnings, have lent strength to BHEL. The company is also seen benefiting from the capex push in infrastructure and energy sectors.

2. RCF (Rashtriya Chemicals & Fertilizers) – Buy | CMP: ₹92.60 | Target: ₹102 | Stop Loss: ₹87

Rationale:
RCF is another attractive pick, forming higher highs and higher lows on the weekly chart. The fertilizer PSU stock has rebounded after consolidating near ₹85 and now trades above its 50-day moving average.

“RCF’s price structure shows renewed strength, with bullish divergence on the daily RSI. This signals a potential upward breakout towards ₹102,” explained Kothari.

Fundamental Context:
With monsoon forecasts remaining stable and sowing activities expected to accelerate, fertilizer stocks like RCF could benefit from seasonal demand. Additionally, government subsidy schemes remain supportive for the sector.

3. Suzlon Energy – Sell | CMP: ₹93.10 | Target: ₹84 | Stop Loss: ₹98

Rationale:
Kothari has advised a sell call on Suzlon Energy, citing signs of exhaustion after a sustained rally. The renewable energy stock recently touched a 52-week high of ₹97.80 but has faced selling pressure near resistance zones.

“The stochastic oscillator shows overbought conditions. A close below ₹92 could trigger further downside towards ₹84,” said Kothari.

Technical Cues:
Suzlon has been a retail favorite, with significant gains in the past six months. However, volumes have started to taper off, and the stock may undergo a healthy correction before any fresh breakout.

Analyst’s View: Risk-Managed Entries Crucial

While the sub-₹100 universe can offer high rewards, it also carries higher volatility. Kothari emphasizes disciplined entries and exits.

“Traders should maintain tight stop losses and avoid chasing stocks after they’ve run up significantly. Many of these stocks are driven by sentiment and momentum more than fundamentals,” he cautioned.

Investor Outlook: A Tactical Play on Value

For investors and traders with a short-term horizon, Kothari’s picks offer tactical opportunities backed by technical setups. BHEL and RCF present upside potential with reasonable risk-reward ratios, while Suzlon offers a contrarian shorting opportunity for experienced traders.

Market participants should also remain vigilant of macroeconomic data releases, monsoon progress, and global cues, particularly from the US Federal Reserve and crude oil markets.