Web Exclusive: Ten stocks to buy in Mid-cap space

Benchmark indices are trading flat with negative bias. The Sensex is down 23 points at 18,769 and the Nifty is higher by 6 points at 5,662. The broader markets are however underperforming the benchmark indices.

The BSE mid-cap index has slumped 0.69% or 6,054 and the small-cap index is down 1.09% or 63 points at 5,766.

NHPC has dipped almost 8% to Rs 19.35 after the Power Minister Jyotiraditya Scindia said that around 19 cases of alleged corruption and irregularities in the company's projects have been reported.

Tribhovandas Bhimji Zaveri (TBZ) has tanked 13% to Rs 218 after HSBC Global Investments sold around 2% of its stake in the company at a price of Rs 250 per share through open market transaction.

Fertiliser shares have slipped this morning on news that the subsidy payment is likely to remain outstanding this fiscal year.

Rashtriya Chemicals and Fertilisers is down 2.7% at Rs 36. National Fertiliser has slumped 3.7%. Gujarat State Fertilisers is down 0.8% at Rs 59.10. Zuari Agro is down 2.5% while Coromandel International, Chambal Fertilisers has slipped marginally.

Amtek India fell nearly 5% on high volumes after a bulk deal of 22 lakh shares was struck on the counter at Rs 76.25 per share.

Shares of steel major SAIL today lost nearly 1% as government's 5.82% stake sale of the firm commenced on the bourses.

The floor, or the minimum offer, price for SAIL's share sale has been set at Rs 63 apiece, which was a 1.41% discount to yesterday's closing price.

Other notable losers include Ruchi Soya Industries, KSK Energy Ventures, Aurobindo Pharma, National Fertilizer, Delta Corp, India Tourism Development Corporation, D B Realty and Sintex Industries, all falling between 5-7%.

The overall breadth of the BSE mid-cap index is unhealthy as 176 stocks are declining while 69 are advancing.

According to Gaurav Ratnaparkhi, technical analyst, Sharekhan, “Mid cap stocks most of which being high beta stocks have crashed significantly in last few weeks. There is lot be seen on the downside in these stocks. Any minor degree bounce should be taken as an opportunity to align the position on the short side”.

Adds AK Prabhakar, Senior Vice President Equity Research, Anand Rathi,” Mid cap and small caps first get hammered when market corrects but this gives opportunity to accumulate good quality stocks from these spaces. We like Speciality Restaurants, Cadila, HSIL, Talwalkars, Everest Inds, Coromandel International, GSFC and JK Cement. At lower levels we do like DLF, Oberoi Realty, Godrej Property and Indiabulls Real Estate.”