Podcast | Stock picks of the day: Midcap stocks to play catch-up to the heavyweights

Fresh leg of the upswing is likely only if the mentioned resistance is broken on a closing basis. Till then we expect the index to marginally consolidate at the current juncture.

The Nifty Midcap-100 index has broken out from a classic Flag pattern on the daily chart. The index has also surpassed and sustained above its long term 200-DEMA which was around the 17750 zone.

Going forward, we expect the midcap stocks to play catch up to the heavyweights.

Here is a list of top three stocks which could give 7-12% return in the next month:

Syndicate Bank: Buy| Target: Rs 47| Stop Loss: Rs 41.5| Upside 9%

The stock has shown immense strength in the last seven weeks and has rallied significantly. The stock has broken out a fresh from a ‘Double Bottom’ pattern on the weekly chart. We expect the stock to rally towards its potential target of Rs 47 in the medium-term.

InterGlobe Aviation: Buy| Target: Rs 1540| Stop Loss: Rs 1397| Upside 7%

The stock has been consolidating for the past four trading sessions and has finally broken out from a Pennant pattern on the daily chart.

The price outburst has also been accompanied by a smart uptick in traded volumes. Hold long positions with a stop loss at Rs 1397 on a closing basis.

Dish TV: Buy| Target: Rs 44| Stop Loss: Rs 36.5| Upside 12%

The stock has been under pressure for the past three weeks and is finally on the verge of a falling channel pattern breakout on the daily chart.

Positive crossovers on the RSI and rising volumes further accentuate our bullish stance on the stock. Hold long positions with a stop loss at Rs 36.5 on a closing basis.

(The author is a Senior Technical Analyst, IIFL)

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