Midcap and small-cap segments represent dynamic and critical components of the equity market, offering both enticing growth opportunities and distinct risks. These segments typically include companies that, while not as well-established as large-cap firms, have significant expansion potential. The last few months have been quite challenging, and we will need to mix our approach with the objective of generating some returns.
Here are three midcap stocks to buy as recommended by Raja Venkatraman for Wednesday
Navin Fluorine International (Cmp ₹5,040)
- Why it’s recommended: Prices of Navin Fluorine International jumped over 3% on 8 July after the company launched a Qualified Institutional Placement (QIP) to raise up to ₹750 crore. The long body bullish candle seen on Tuesday augurs well for the prices. This has led to an improvement in the sentiment. With prices holding firm we can consider going long.
- Key metrics: P/E: 103.66, 52-week high: ₹4999.85, Volume: 346.23K.
- Technical analysis: Support at ₹4740, resistance at ₹5500.
- Risk factors: Market volatility and a slowdown in export-focused businesses, and concerns about its high valuation compared to peers.
- Buy at: CMP and dips to ₹4850.
- Target price: ₹5500-5700 in 1 month.
- Stop loss: ₹4775.
Also Read: Lodha Developers pre-sales dull, but business development activity remains solid
Cummins India (Cmp ₹3,478)
- Why it’s recommended: Cummins India was among the first companies in the country to receive regulatory approval for manufacturing CPCB IV+ compliant gensets. The volatile moves seen since the start of 2025 are now seen giving up indicating a possibility of some upward bounce as a every dip into the TS & KS bands are attracting some demand. With new innovations being launched the demand is emerging. Can look to go long.
- Key metrics: P/E: 50.59, 52-week high: ₹4056.80, Volume: 690.65K
- Technical analysis: Support at ₹3200, resistance at ₹4200.
- Risk factors: Global economic slowdown, trade tensions, and specific challenges related to the power generation sector.
- Buy at: CMP and dips to ₹3354.
- Target price: ₹3770-3900 in 1 month.
- Stop loss: ₹3320.
Datamatics Global Services (Cmp ₹669.05)
- Why it’s recommended: The counter has undergone some ranging action forming a double bottom in mid-May 2025. On a recovery it faced a value area resistance that kept halting the upmove forming higher high and higher lows holding the TS & KS Bands for the past few days around 645 has been overcome. With steady volumes building up within the bands one can look for an encouraging upmove in the coming days.
- Key metrics: P/E: 71.43, 52-week high: ₹740, volume: 247.78K.
- Technical analysis: Support at ₹600, resistance at ₹800.
- Risk factors: Customer acquisition and Volume declines from key customers and investments in AI platforms.
- Buy at: above 670 and dips to ₹645
- Target price: ₹735-750 in 1 month.
- Stop loss: ₹635.
Sentiment holds onto positive vibes
Midcap stocks have staged a strong comeback by June 2025, reclaiming investor confidence after a turbulent start to the year. The midcap indices closed at an encouraging point, marking a steady uptrend and staying above key moving averages. This resurgence is underpinned by a confluence of favourable factors: softening inflation, a dovish monetary policy stance, and robust earnings growth in the midcap segment.
The Reserve Bank of India’s recent 50 basis point rate cut—its third in 2025—has improved liquidity, while a 100 bps CRR reduction is expected to inject ₹2.5 lakh crore into the system. These moves have bolstered domestic sentiment and revived foreign institutional flows. Midcap companies, in particular, have outperformed, with the Nifty Midcap 150 reporting a 21% rise in profits in Q4 FY25.
Valuations, which had corrected sharply earlier in the year, are now seen as attractive, especially in sectors like capital goods, financials, and building materials. With above-average monsoon forecasts supporting rural demand and global rate stability on the horizon, analysts believe the midcap rally has legs—provided earnings momentum and macro stability persist.
Raja Venkatraman is the co-founder of NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
