Web Exclusive: Five Midcap stocks to watch out for

The broader markets are trading flat and have outperformed the benchmark indices. The BSE Mid-cap index has slipped marginally by 0.03% to 6,313 and the small-cap index is up 0.25% at 6,321.

However, benchmark indices pared early gains as investors turned cautious at higher levels with IT shares leading the decline after conservative guidance from Cognizant.

At 10:50AM, the 30-share Sensex was down 106 points at 20,154 after hitting a high of 20,358 and the 50-share Nifty was down 36 points at 5,987 after hitting a high of 6,048.

Ranak Merchant, Technical Analyst - Strategies from Sushil Financial Services speaking to Surabhi Roy says broader markets could continue to outperform the broader indices but an index break above 6070 would be crucial for the merriment to continue.

SmartInvestor: What is your advice to traders on the Nifty index for the trading session and key levels to watch out for?

Ranak Merchant: The mayhem of the last few sessions saw the benchmark Nifty drift below its 200 Day EMA of 6001 to find support just below the 200 Day SMA of 5974. With today's upmove Nifty has crossed above both the benchmarks.

Ranak Merchant: 5970 being an earlier important support zone from which markets had staged a comeback the sustenance of the same on closing basis remains imperative.

Ranak Merchant: On the upside 6030-6070 is a resistance zone and a close above 6070 would indicate a short term upmove to be in place. Watch 6070 for breakout (Nifty spot, closing basis).

SmartInvestor: What is your view on Bank Nifty?

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