Vodafone Idea, Escorts: 5 mid-cap stocks to bet on amid market weakness

Escorts and Vodafone Idea can rally up to 25-30 per cent; while AU Small Finance Bank, Bank of Baroda and REC too can deliver double-digit returns.

The markets have witnessed some weakness in the last few trading sessions, with the S&P BSE Sensex and Nifty 50 losing their winning streak. Both the indices failed to record new highs and struggled to show stability.  The BSE Sensex virtually lost 1,000 points in one session. Meanwhile, Nifty 50 corrected nearly 300 points.

 

The Nifty Midcap index has almost run up 50 per cent on year to date basis and several midcap stocks having outperformed the index. The sentiment continues to dominate the bullish outlook and any healthy correction should be looked as an opportunity to accumulate these stocks.  

 

AU Small Finance Bank Limited (AUBANK)

Likely target: Rs 1,208 and Rs 1,300

Upside potential:  6% to 13%

The shares of AU Small Finance Bank Limited illustrates an immediate reversal near the 200-day moving average (DMA) placed at Rs 1,081. This move has conquered 100-DMA located at Rs 1,122 today, with firm price strength. The medium-term support stays at Rs 1,047, which is its 50-weekly moving average (WMA). The trend is heading towards Rs 1,208, its 50-DMA and once this moving average gets crossed, the positive bias may even see the stock  rally towards Rs 1,300, according to the daily chart.  CLICK HERE FOR THE CHART

 

Bank of Baroda (BANKBARODA)

Likely target: Rs 96

Upside potential:  18%

A positive crossover of the 50-DMA over its100-DMA symbolizing a “Golden Cross” and has triggered a bullish outlook for a medium-term. The stock is heading towards Rs 96, which is the 200-WMA. The immediate support comes at Rs 72.50, its 50-WMA. The stock should get support at 200-DMA, currently placed at Rs 76.60 levels, this moving average has been held since December last year.  CLICK HERE FOR THE CHART

 

Escorts Ltd (ESCORTS)

Likely target:  Rs 1,700 and Rs 1,850

Upside potential:   15% to 25%

Whenever a stock is supported by over 3 parameters, the trend is observed to be highly bullish. Such is the case with the shares of Escorts Ltd. The formation of “Higher Highs, Higher Low” along with Relative Strength Index (RSI), successfully defending the positive bias in the overbought category shows a firm strength with a strong upward bias. Moreover, the stock has given a breakout of the “Golden Cross” which hints to a rally in the direction of Rs 1,700 and Rs 1,850 levels. The support for the stock is located at Rs 1,400, which needs to be held on the closing basis.  CLICK HERE FOR THE CHART

 

Vodafone Idea Ltd (IDEA)

Likely target:  Rs 15 to Rs 17.50

Upside potential:   30%

The stock conquered the major resistance of Rs 11 with elevated volumes, according to the weekly chart. This up move is hinting a rally towards Rs 15 to Rs 17.50 levels, which is in the direction of its 200-WMA. The Moving Average Convergence Divergence (MACD) is on the verge to cross the zero line. And if that happens, the direction and momentum may see very aggressive upward rally, according to the weekly chart. CLICK HERE FOR THE CHART

 

REC Ltd (RECLTD)

Likely target:  Rs 185 and Rs 200 ( major breakout above Rs 170)

Upside potential:   9% to 17%

The stock has a support of 200-DMA, which it has held since December last year. The 200-DMA is currently positioned at Rs 144. As long as this moving average is held, the upside breakout above the hurdle of Rs 170 may trigger a rally towards Rs 185 and Rs 200 levels, according to the daily and weekly charts. The immediate support for the stock comes at Rs 150.  CLICK HERE FOR THE CHART