Yet, even in this cautious environment, certain high-quality midcaps and smallcaps continue to attract steady buying interest. The challenge now is to zero in on those resilient names and tactically deploy capital for a short-term rebound.
Here are three midcap stocks to buy on 19 August, as recommended by Raja Venkatraman of NeoTrader.
Best stocks to buy today
KIRLOSENG: Buy CMP and dips to ₹915 | Stop: ₹898 | Target: ₹1,040-1,085
NESCO: Buy CMP and dips to ₹1,398 | Stop: ₹1,370 | Target: ₹1,550-1,585
KPIL: Buy at CMP and dips to ₹1,240 | Stop: ₹1,215 | Target: ₹1,365-1,410
Sentiment gets a reboot
The BJP government’s recent policy initiatives and GST reforms are expected to strongly influence India’s midcap market landscape, both immediately and in the longer term.
1. Strengthening fundamentals: With GST reforms targeting ease of doing business and reducing costs, midcap companies—especially those in sectors impacted by rate cuts (e.g., food processing, renewable energy, medical devices)—stand to benefit from improved operating margins and expanded demand.
2. Risk and return profile: Recent mutual fund analysis suggests midcap funds have delivered strong performance, with returns ranging from 21% to nearly 27% over the last three years. However, market experts recommend midcap investments, primarily to those with high-risk tolerance and a long-term horizon, as the segment remains volatile amid reform transitions.
3. Sectoral leaders: Stocks in retail, electronics manufacturing, packaging, and water treatment—sectors benefiting directly from GST relief or supply chain simplification—have been highlighted for potential upside by leading brokerages. The midcap sector remains the “growth engine” of the Indian market, poised to benefit as companies leverage reforms for accelerated expansion.
The midcap market is set for robust growth, driven by government-led reforms that reduce compliance costs, boost sectoral demand, and ease regulatory bottlenecks. Companies should capitalize on these opportunities by embracing automation and updating systems for new GST mandates.
On the charts, too, we can see a rebound from the lower levels as the momentum is showing a positive divergence that can help the trends revive and generate an upward trajectory in the coming days.
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Three midcap stocks to trade, recommended by NeoTrader’s Raja Venkatraman for Tuesday
Kirloskar Oil Engines Ltd(Current market price: ₹944.10)
KIRLOSENG: Buy CMP and dips to ₹915 | Stop: ₹898 | Target: ₹1,040-1,085
- Why Kirloskar Oil is recommended: The Kirloskar Engine stock has surged after a consolidation, from the TS & KS support that was witnessed in the last 2 weeks. The stock’s strong performance has risen above the consolidation that had dipped into the cloud support and formed a rounding pattern. The long body bullish candle signals a positive outlook 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: 31.87
- 52-week high: ₹1,405
- Volume: 470.47k.
- Technical analysis: Support at ₹800, resistance at ₹1,200
- Risk factors: Reliant on external manufacturers, competitive landscape and regulatory compliance
- Buy at: CMP and dips to ₹915
- Target price: ₹1,040-1,085 in 2 months
- Stop loss: ₹898
Nesco Ltd (Current market price: ₹1,437.80)
NESCO: Buy CMP and dips to ₹1,398 | Stop: ₹1,370 | Target: ₹1,550-1,585
- Why Nesco recommended: Nesco operates across various segments, including IT parks, the Bombay Exhibition Centre (BEC), hospitality (Nesco Foods), and engineering (Indabrator). This diversification helps to reduce dependence on any one sector and creates a more stable revenue stream. The stock has been witnessing a consolidation and after holding the TS line support and the strong showing seen on Monday augurs well for the prices. Consider this as an opportunity to go long.
- Key metrics
- P/E: 23.79
- 52-week high: ₹1,428.80
- Volume: 581.47k
- Technical analysis: Support at ₹1,250, resistance at ₹1,700
- Risk factors: Global economic slowdown, trade tensions, and high dependence on one customer
- Buy at: CMP and dips to ₹1,398
- Target price: ₹1,550-1,585 in 2 months
- Stop loss: ₹1,370
Kalpataru Projects International Ltd (Current market price: ₹1,273.30)
KPIL: Buy at CMP and dips to ₹1,240 | Stop: ₹1,215 | Target: ₹1,365-1,410
- Why Kalpataru Projects is recommended: The Kalpataru Projects counter has undergone some sharp declines, but the fall seen in the last few days has been receding, giving rise to a potential rebound. The momentum indicator clearly shows a divergence that can help the revival as trends are attempting to move higher. With steady volumes building up within the bands one can look for an encouraging upmove in the coming days.
- Key metrics
- P/E: 28.74
- 52-week high: ₹1,438.05
- Volume: 378k
- Technical analysis: Support at ₹1,190, resistance at ₹1,450
- Risk factors: Operational delays, government policy changes affecting real estate, and cost overruns
- Buy at: CMP and dips to ₹1,240
- Target price: ₹1,365-1,410 in 2 months
- Stop loss: ₹1,215
Overall, midcap and smallcap stocks still hold appeal for those chasing returns above traditional largecap equities. Yet, their propensity for swift price movements calls for a robust game plan, disciplined execution, and comprehensive due diligence.
As themes in emerging markets shift—propelled by economic growth and technological breakthroughs—savvy investors who carefully weigh these growth prospects against their accompanying risks are well-positioned to reap meaningful gains over the long haul.
Raja Venkatraman is co-founder, 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.
