The Nifty Midcap 50 index has rallied 14% in the last one month, erasing almost all year to date losses as the bulls returned to the midcap space. The Midcap 50 index is currently sitting above 8400 levels. Analysts at Prabhudas Lilladher believe the index has more room to climb with a target of 8600 and support at 7940. “The presence of rising demand and rising momentum inside a strong uptrend increases the probability of the index moving up. The target is around 8600. The cross below 7940 will negate the expectations of 8600 target,” they said. To benefit from the uptrend, analysts have picked 7 midcap stocks that they believe will benefit and have strong formation on the charts.
Tata Communications’ share price has soared more than 8% in the last 5 trading days to now sit at Rs 1,254 per share. “The stock has consolidated and maintained the base near 1130 levels and currently has picked up momentum with a bullish candle pattern to imply strength and has potential to carry on with positive bias still further in the coming days,” analysts said. The target price implies 14% upside potential.
The stock has soared higher in the last few days to now trade at Rs 631 per share. “The stock has gradually been on the rise and recently moving above the 50EMA level of 580 has improved the bias and upside with a move past the resistance trendline of the channel pattern would further improve the trend for upside potential move,” the report said. Analysts see an upside potential of 14%.
Westlife currently trades at Rs 485 per share and has had a flat movement in the last five days. Analysts at Prabhudas Lilladher believe the stock, after the decent correction, has bottomed out near 440 zone and indicated a reversal pattern with currently just moving near the 50 EMA level of 480. They added that Westlife stock has shown strength and potential to carry on the momentum further upward in the coming days. 15% upside potential is seen.
“The OBV (On Balance Volume) on the monthly chart is favourable and the stock has broken above the previous all-time high. The resistance is far away and hence potential is there,” the report said. Analysts said that the weekly chart is showing rising MACD indicating increasing momentum, highlighting that the probability of further breakout is high. Currently, Bharat Electronics’ share price sits at Rs 221 per share, suggesting an upside of 13%.
Chartists see increasing demand for the scrip, which they say is in a strong uptrend. “On the weekly chart, the stock has reversed from the support of 200 weeks moving averages. The MACD has also turned up indicating rising momentum,” they said. The stock is trading at Rs 1,548 per share, implying an upside of 6.5%.
“The stock has given a breakout on the weekly chart. The rising momentum indicates a successful breakout. The Relative Strength (base is Nifty 500) on the daily chart is favourable. The price is consolidating after the breakout,” analysts said. The stock currently trades at Rs 1,300 per share, suggesting an upside of 7.7%.
