According to Chola Securities, the Nifty Midcap 100 index remains positive over both short and medium-term periods. The brokerage estimates that the index could move towards the 65,000 level in the coming weeks, with the 65,000 level remaining the primary target for medium-term outlook. However, if the market weakens and the index slips below 61,000, a period of consolidation may follow, with the next key support level around 59,000.
As reported by Chola Securities, the index is showing strength in the Relative Strength Index (RSI). A breakout above the RSI trendline signals positivity in the short term, suggesting a likelihood of increased buying activity in the index. This technical indicator supports the bullish outlook for mid-cap stocks in the current market environment.
Chola Securities has identified three stocks as bullish picks for the current market environment. Dixon Technologies in the Electronics Manufacturing Services sector has risen 18.27% year-to-date, benefiting from growing electronics manufacturing opportunities in India. BHEL, a leading capital goods and power equipment company, has surged 44.55% year-to-date, expected to benefit from rising infrastructure and power sector investments. Biocon in the pharma and biotech sector has gained 12.93% year-to-date, driven by healthcare demand and new product launches.
According to Chola Securities' market outlook, the short-term outlook (1-2 weeks) remains positive, while the medium-term outlook (3-4 weeks) also maintains a positive stance. The brokerage's analysis suggests that the mid-cap rally continues to show strength across multiple timeframes, though investors should monitor the 61,000 level as a key support in case of market weakness.
