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Midcap Masala: Which midcap stocks will see movement, know expert’s opinion
Good buying was also seen in midcap and smallcap indices. About 39 out of 50 stocks of Nifty-50 were on the rise, which is an indication of broad support in the market. However, due to the rise of about 6 percent in India VIX, there is a possibility of fluctuations, which investors should keep an eye on. So in such a situation, the market expert gave his opinion about which stocks can bet in midcap.
Which stocks provided support, where was weakness seen?
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Coal India, NTPC and some metal stocks contributed significantly to the strength of the market. On the other hand, the IT sector appeared to be under pressure, where selling was seen in stocks like Infosys, Tech Mahindra and Airtel. The advance-decline ratio remained almost balanced, which indicates that the market has not yet entered full bullish mode.
Special movement in midcap stocks
Some selected stocks performed strongly in the midcap segment. Novotis India hit upper circuit as its parent company announced the sale of its 71 per cent stake. ABB India shares rose nearly 5 per cent after its quarterly results came in line with estimates, while Lenskart gained 3 per cent after a positive brokerage report.
Will the pullback rally continue? Expert opinion
Market experts believe that due to formation of support around Thursday’s low level, the pullback rally may continue in the market and Nifty may reach around 25,650. However, the level of 25,400 has been considered an important support. If it slips below this, the index may go towards 25,100, hence the market is not considered to be in a completely safe zone right now.
Confidence increased due to India-US tech agreement
He said that meanwhile, the news of signing of agreement between India and America related to critical mineral, semiconductor and AI supply chain strengthened the market sentiment. This initiative has been started with the aim of reducing dependence on China and making the global tech supply chain stable. Countries like Japan and South Korea are also included in this alliance, which is expected to benefit India’s tech and manufacturing sector.
According to experts, buying in Bank of Maharashtra can be considered with a stoploss of 67 and a target of 72. Whereas in Tata Investment, it is advised to adopt a trading approach of two to three days with a stoploss of 700 and a target of 770.
Fluctuation in tobacco shares, weakness in IT sector
On the other hand, some stocks in the midcap segment also showed pressure, especially due to weakness in the IT sector, decline was recorded in Persistent Systems, L&T Technologies and other tech companies. In recent days, there was a strong rise in tobacco shares due to the news of increase in prices of cigarette companies, due to which a sharp rise was also seen in stocks like Godfrey Phillips, but now after the strong rally, profit booking seems to be dominating them. Experts believe that there may be a phase of consolidation at present and the strategy of buying on dips may be better.
Expert advice on Hitachi, NTPC shares
In today’s session, good buying trend was seen in stocks like Hitachi and NTPC, which indicates that there may be scope for further upside in them and investors who already have positions are being advised to hold for now.
(Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.)
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