"Lot of midcaps are already moving. But there is a lot of skceptism. Going forward, the movement in midcaps will not be across the board but one will witness specific stock movements," said Kulkarni.

But Gaurang Shah, Geojit Financial Services, is little apprehensive about the performance of the midcaps sector and advices caution in the space. He said, "I am going to be choosy about the midcaps and small caps. Although frontliners are looking expensive, conviction has not come in midcaps and small caps.'

According to him, there should be more of DSP Merril Lynch's kind of MF which focuses on midcaps and smallcaps. "We need more of these kind of funds that bring in larger amount of money."

Predicting a rangebound movement in the midcap space in December-January, he says stability of midcaps will depend on how much more upside is still left in the frontliners.  

Shah said, "By December midcaps will witness range bound movement. You can see an appeciation of 10-15%. You will see retail participation going into selective midcaps and smallcaps as and when they have start performing. But one should be cautious."

By-Piyu Sen