In a chat with Zee Business Managing Editor Anil Singhvi on 23rd August, market expert Rajesh Palvia recommended his top three mid-cap stock picks for investors to buy, which have great potential to yield bumper returns. The Birlasoft, Poly Medicure, and Arvind Fashions stocks were recommended with long-term, positional medium-term, and short-term categories, respectively. Know why this analyst thinks these stocks hold promise!    

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Palvia said the long-term pick will be Birlasoft in the IT sector. The stock has maintained good momentum. If you will see the long-term setup, then it is trading in positive territory. Last month we saw a rally in the stock. If we see the weekly setup, in the 7-8 weeks, a range-bound consolidation is happening. Overall if we analyse the long-term setup, then it is trading in a bullish territory across all time frames. This is the reason why we should buy Birla Soft stocks.

“The Target of Rs 480-510 can come in the long term.  So, from the current level add this into volatility. Stop Loss Rs 395. So, buy Birlasoft in the long term,” he added.  

Palvia picked Poly Medicure for the Positional category. If you will see this stock, then it is trading in a long-term territory. But if you will see the move of this stock in the past 2-3 months then you will notice that after the rally, the stock saw some corrections. And after the correction, in the 5-6 sessions we have seen a reversal in the daily chart, a down slopping trading breakout in the daily chart. And this is the reason we should buy this stock in the positional term.

“We expect a target of Rs 1,020. If there is a decline in the current level then add this with Rs 935-915. And stop loss will be at Rs 895. So, buy Poly Medicure in the positional category,” he added.

Palvia chooses Arvind Fashions for the short-term category. If we will see the set-up of this stock then for the near term and short-term stock, it has given a reversal sign. If I analyse this stock on a monthly chart then the consolidation has happened in the past 15-20 months. We have seen a breakout in the previous month. And now in this month also, we are seeing a follow-up buying. This stock had seen bigger corrections. But if we see the monthly and weekly set up, then in the near term there is a good buying option.

“The volume actions show that this stock will now perform well in the short term. We can expect a short-term target of Rs 300. Buy in the range of Rs 258-253. The stop loss will be Rs 245. So, buy Arvind Fashions in the short term,” he added.