While the broader markets have gone up, many of the mid caps are still at a significant discount to their fair value or their all time highs. Sentiment is likely to remain positive but index will take a while to break the broad trading range of 4700-5400 of nifty in which it has been confined to since October last year. For active investors and traders the big opportunity lies in the mid cap space in the near future. Videocon Industries, Indusind Bank, Yes Bank, Spice Mobile, Kaveri Telecom, Emco, Indo tech transformers, Visaka Industries, KS Oils and Mahindra Satyam are some mid cap ideas which may be considered. However investors need to keep in mind that mid caps are always more volatile and carry a higher degree of risk regardless of the underlying fundamentals. Hence trade or invest in mid caps and look forward to earning fabulous returns only if you have a penchant for risk and can tolerate some choppiness in your portfolios.
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