Will Midcaps turn MadCaps?

The Nifty movement was understandably range bound with much higher scrip specific moves. Heavyweights like Reliance and Tata Motors among others, saw some selling pressure.

The Economic Survey , prima facie, seems to be aiming much higher. The Government's projections of GDP and other figures are optimistic. Whether these will be achieved is another question. However in tomorrow's budget I may want to look out for indications on how the FM plans to control inflation and at the same time withdraw (if at all) the stimulus. Tight rope walking, we may say.

One observation in the past few days is that midcap stocks are under performing and technically weak. The CNX Midcap index seems to be dangerously poised and a close below 6950 for the Index could surely increase the selling pressure...



Most of the investors have a high weightage of Midcaps in their portfolio and it may be necessary to book profit where available and reduce exposure if the indicated level is broken.

Keeping my fingers crossed and ears open for the FM

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.
www.investogyan.com