Midcaps hog limelight: 5 stocks you can focus on

Moneycontrol Bureau

It was a choppy session of trade on Dalal Street today. The market pared early gains to end about half a percent in the green.

Nifty closed at 6,169 up 23.15 points while the Sensex added 34 points at 20247.33. All eyes seem to be on the midcap stocks now as the index saw buying interest through out the day. BSE Midcap index ended at 6592.21 up 0.4 percent from its previous close.

Among the midcap stocks, Manappuram (down 6.2 percent), Orchid Chemicals (down 5.2 percent) were biggest losers on the back of disappointing March quarter earnings.

Meanwhile, big mover of the day Apollo Hospitals (up 8.5 percent) rallied after it got included in the MSCI index. Adani Ports (up 6.3 percent) and Polaris (up 6.5 percent) were big gainers among the midcap stocks.

As investors are busy buying midcap stocks, here are stocks that you can turn your focus on:

Manappuram Finance

Sudarshan Sukhani of s2analytics.com recommends to hold on to Manappuram Finance. According to him, all kind of bad news has been discounted in the stock. "To my reckoning while I do not go for fundamentals the company has written off everything possibly it could write-off. So this is the worst possible time to exit the stock if you have it, now you hold it," he said in an interview to CNBC-TV18.

Indiabulls Real Estate and DLF

Indiabulls Real Estate is a  preferred stock of Sukhani. He explains that today it has broken out of a renewed bullish pattern and also coming out of a deep correction. “So there is a lot of safety. The same applies to DLF which was a pick today and that is breaking out, so stay with the better stocks,” he adds.

Jaypee Infra

Analyst SP Tulsian likes the stock on strong land development projects. He reasons that  the companies’ projects includingYamuna Expressway will help to reduce its debts.  “Even if you take the earning point of view may be they are posting an earnings per share (EPS) of close to about Rs 10. So, there is no justification for giving a PE multiple of 4. So, I have been always holding positive view, but for some reason the stock has not been moving up,” he elaborates.

Adani Ports and Special Economic Zone

Sukhani thinks Adani Ports and Special Economic Zone is a buying opportunity mainly because all the three Adani companies are showing signs of bottoming out. "It is not the kind of run-up that we are seeing here in Apollo Hospital. It is a very different chart so there I would be a buyer. I would risk a small decline and say yes I would hold on to it," he says.

Nasrin Sultana
nasrin.sultana@network18online.com