Kacholia has 25 stocks in his portfolio in which he holds over a percent stake, according to shareholding data as on October 28.
In the broader markets, midcaps had a good day of trade as they outperformed frontliners.
The Sensex rallied 260.59 points to 35,547.33 and the Nifty rose 61.50 points to 10,772 amid balanced market breadth.
India market could see a bit of correction in the short term but the market has been correcting in the last one month even though Nifty rose in the same period.
According to Mehraboon J Irani, MD & CEO, Gini Gems Consultants, one can still selectively buy into value midcaps.
Be extremely careful about the kind of trades that you enter right now. There is a temptation to look at the Nifty at all-time high. It is hiding a lot of things.
For investors, the best practice would be to look at bottom-up stories.
The midcap index has been down for the last four days. The index is down in excess of about 4 percent in the last four days versus the Nifty and the Sensex which is down close to about 0.8 percent.
S Krishna Kumar, CIO-Equity, Sundaram MF said that fund managers are moving away from high-quality high growth companies to cyclical growth companies.
One should look for turnaround companies that have focus on quality available at aggressive valuations, said Ayaz Motiwala, Senior Fund Manager at Nivalis Partners.
Prasad of Kotak Institutional Equities also felt NBFCs could see some pressure as banks will look to capture retail customers. He prefers Aurobindo Pharma and IOC as valuations look reasonable and cheaper than peers.
Dipen Sheth of HDFC Securities recommends looking for fundamentally strong stocks, even if it means looking outside the index ones. He is upbeat on Repco Home Finance and TeamLease Services.
Sudarshan Sukhani of s2analytics.com is of the view that one can buy Oil India Limited and Tata Global Beverage and advises selling Ceat.
Speaking to CNBC-TV18 Udayan Mukherjee said that while the market is trying to price in the gravity of the moves over the last couple of weeks, participants don‘t know which way the cookie is going to crumble. Right now, there is hope the market has discounted the worst, but it could change, he said.
Factors such as GST structure and its implementation will centre the focus of the market to midcap segment and the segment will remain more constructive despite a valuation gap between midcap and large cap stocks, said Nitin Jain, Principal Investment Manager at Kotak UK.
Midcaps rose about 22 percent on average last year. But for a lot of investors, it wouldn't felt like a bull market.
Stating that there was "clear and present" danger of a correction in stocks, veteran financial commentator Udayan Mukherjee said a 10 percent downtick could be on the cards.
In an interview with CNBC-TV18, Pankaj Tibrewal, Fund Manager with Kotak Asset Management Company, explained why it makes sense to invest in companies that benefit from rise in discretionary and government spending, and said that sound stocks should be held in spite of seemingly rich valuations.
Midcaps are often overlooked by large investors and FIIs. Investments in midcaps are often considered risky as they are prone to volatility, but that's where the money has been made. Prakash Diwan, SP Tulsian, Ambareesh Baliga, Deven Choksey give their picks.
The banking space has rallied in the last two months helped largely by disclosures of bad loans. But the pain is not over yet for banks. It will last for two quarters at least, says Vaibhav Sanghavi, MD Of Ambit Investment.
Ajay Srivastava, CEO, Dimensions Consulting says there has not been much of fresh investments into Indian equities based on conviction about fundamentals. He expects March quarter earnings to be lacklustre, but says the market has already factored it in
Amit Rathi, MD at AnandRathi Financial Services says market will look for credible action plan on bank recapitalisation and spending on infrastructure in the Budget.
Market expert Atul Suri says technical charts indicate that the CNX Midcap index could slide all the way to 10,000 in the short term. And while the downside in the Nifty may not be as severe, there could be a rub off effect of the downtrend, Suri says
According to Ajay Srivastava, CEO, Dimensions Consulting, a key concern for the market is the lack of leadership. He says many midcaps are doing much better operationally, compared to the large caps, which are floundering at the moment.