Midcap Market Reversal 2025: Top Stock Basket for 20–25% Short-Term Gains
By CapitalKeeper | Stock Basket | Indian Equities | Market Moves That Matter
CapitalKeeper Special Report
Midcap Market Reversal: Stock Basket for 20–25% Short-Term ROI
Discover CapitalKeeper’s handpicked midcap stock basket targeting 20–25% ROI. Analyze the market reversal, technical signals, and key sectors set to outperform in the coming months.
Introduction: Midcap Market Reversal in Play
After months of consolidation and selective corrections, midcap stocks are showing a strong reversal supported by improving volumes, positive MACD crossovers, and sector rotation from largecaps to broader markets. Domestic liquidity remains robust, and mutual fund inflows into midcap schemes are at record highs, suggesting sustained momentum for the next 2–3 months.
Key Indicators Behind This Reversal
1. Technical Signals
- MACD Crossovers: Multiple midcaps are witnessing bullish MACD crossovers on weekly charts.
- RSI Rising from 40–50 Zones: Indicates reversal from oversold conditions to bullish territory.
- Volume Breakouts: Accumulation seen in key sectors like capital goods, power, and specialty chemicals.
2. Sectoral Triggers
- Capex Cycle Revival: Government’s infra push benefits engineering and capital goods midcaps.
- Energy Transition: Renewables and EV ecosystem midcaps gaining traction.
- Export Opportunities: Specialty chemical midcaps poised for rebound as global supply chains stabilize.
3. Market Sentiment
- FIIs still light in midcaps — room for inflows.
- Broader indices (Midcap 100, Smallcap 100) outperforming Nifty 50 by 2–3% weekly.
CapitalKeeper’s Midcap Stock Basket (Target ROI: 20–25% in 2–3 Months)
Note: Each pick is backed by technical breakout + sectoral tailwind.
1. ITI Ltd (CMP ₹302)
- Setup: Narrow range breakout; volume surge confirms strength.
- Support: ₹270–275
- Target: ₹370–385
- Rationale: Beneficiary of government’s telecom infra orders; strong fundamentals and technicals align.
2. Elgi Equipments (CMP ₹571)
- Setup: Weekly positive MACD divergence; fresh trendline breakout.
- Support: ₹440–430
- Target: ₹650–670
- Rationale: Leadership in compressors; capex-linked demand surge.
3. Clean Science & Technology (CMP ₹1,238)
- Setup: Higher-high structure on weekly; multi-year breakout.
- Support: ₹1,180
- Target: ₹1,550–1,600
- Rationale: Specialty chemicals revival + export opportunities.
4. Snowman Logistics (CMP ₹56)
- Setup: Daily MACD bullish; weekly breakout above ₹55 zone.
- Support: ₹50
- Target: ₹70–72
- Rationale: Cold chain logistics demand rise (QSR, food delivery growth).
5. Walchandnagar Industries (CMP ₹208)
- Setup: Closed above trendline resistance; weekly MACD positive.
- Support: ₹190–200
- Target: ₹280–290
- Rationale: Defence + space segment exposure; cyclical re-rating candidate.
6. Dolat Algotech (CMP ₹92)
- Setup: Trendline + resistance breakout with strong volume accumulation.
- Support: ₹85–90
- Target: ₹125–130
- Rationale: Algo trading + broking theme; volume-backed bullishness.
7. GPPL – Gujarat Pipavav Port (CMP ₹160)
- Setup: Range breakout above ₹150; positive weekly MACD.
- Support: ₹140–145
- Target: ₹190–200
- Rationale: Port sector re-rating; strong logistics growth outlook.
Risk Management
- Allocation Strategy:
- 15% each in Clean Science, Elgi Equip, ITI
- 10% each in GPPL, Snowman, Walchandnagar, DolatAlgo
- Trailing Stoploss:
- Use 8–10% stoploss on individual positions.
- Review weekly charts every Friday to avoid false breakouts.
Expected Timeline & ROI
- Holding Period: 6–10 weeks (2–3 months).
- Targeted ROI: 20–25% based on price action and sectoral momentum.
Key Macro & Event Triggers to Monitor
- RBI Policy (August 2025) – Any dovish tone can fuel broader market rally.
- US Fed Commentary – Global risk sentiment driver.
- Q2 FY26 Earnings Season – Midcap earnings outperformance likely to attract further flows.
- Crude Oil & INR Movement – Impact on inflation and sentiment.
CapitalKeeper Pro Tip
Midcaps are volatile but provide superior returns during reversal phases. Focus on price structure, volumes, and sectoral themes rather than chasing hype. A disciplined approach with trailing SL ensures risk-adjusted gains.
Conclusion
The midcap reversal is underway with strong technical confirmations and favorable sector dynamics. The curated basket above balances growth sectors (chemicals, logistics) and cyclical plays (capital goods, defence), offering a practical roadmap for traders aiming 20–25% returns in the near term.
📌 For daily trade setups, technical learning, and smart investing tips, stay tuned to CapitalKeeper.in
📌 For more real-time updates, trade setups, and investment insights — follow us on [Telegram] and [WhatsApp Channel] subscribe to our newsletter!
📌 Disclaimer
The content provided on CapitalKeeper.in is for informational and educational purposes only and does not constitute investment, trading, or financial advice. While we strive to present accurate and up-to-date market data and analysis, we make no warranties or representations regarding the completeness, reliability, or accuracy of the information.
Stock market investments are subject to market risks, and readers/investors are advised to conduct their own due diligence or consult a SEBI-registered financial advisor before making any investment decisions. CapitalKeeper and its authors are not liable for any loss or damage, direct or indirect, arising from the use of this information.
All views and opinions expressed are personal and do not reflect the official policy or position of any agency or organization. Past performance is not indicative of future results.By using this website, you agree to the terms of this disclaimer.
