Midcaps back in demand: 70 of BSE 500 stocks move past 200-DMA
During the year so far, the BSE Midcap index has been down 5 per cent.
The trend assumes significance as market breadth has largely remained negative since January as mid and smallcap stocks witnessed intense selling. During the year so far, the BSE Midcap index has been down 5 per cent while the BSE Small-Cap has lost nearly 11 per cent.
Market participants say the investor appetite for midcap stocks is improving as there are hopes of a broader economic revival. Some of the large-cap stocks have posted improved corporate earnings for quarter ending September. There are expectations in the market that midcaps will also catch up with their largecap peers in terms of earnings revival. Adani Green Energy has registered the best performance in the BSE 500 index in terms of 200 DMA as it is currently trading 97 per cent over its long-term price average. The stock is also amongst the best performing ones in 2019 as it has surged nearly 120 per cent during the year. HDFC Asset Management Company (AMC), Berger Paints, ICICI Securities and Reliance Nippon AMC are all currently trading over 40 per cent above their 200 DMA.