Raja Venkatraman’s top midcap picks for 27 October

Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:

EQUITASBNK (current price ₹59.55) – Buy above ₹60, stop ₹55 target ₹67 (Multiday)

• Why it’s recommended: Equitas Small Finance Bank is a commercial bank in India that was licensed by the Reserve Bank of India (RBI) in 2015 and offers a range of banking products and services, including savings and business accounts, personal loans, and digital banking solutions. The counter has been consolidating for a while steadily moving higher forming higher high and higher lows holding the TS & KS Bands for the past few days. After a brief decline the stocks managed to gather support within the bands produce a turnaround. Look to buy.
• Key metrics:
  • 52-week high: ₹75.50,
  • volume: 2.97M.
• Technical analysis: Support at ₹225, resistance at ₹295.
• Risk factors: Vulnerability in unsecured loans , equipment failure, industrial accidents, and natural disasters, working capital.
• Buy above: ₹60
• Target price: ₹67 in 2 months.
• Stop loss: ₹55.

PNB Housing Finance (current price ₹908) – Buy above ₹910, stop ₹890 target ₹935 (Intraday)

• Why it’s recommended: A strong patronage from the brokers ensured that a strong volume was generated on Friday despite bearish market conditions. However, the recent turnaround in the housing finance sector has helped the prices stabilise in the recent quarter. The strong long body bullish candle seen last week augurs well for the prices. This has led to an improvement in the sentiment. With prices holding firm we can consider going long.
• Key metrics:
  • P/E: 11.58,
  • 52-week high: ₹1141.85,
  • Volume: 1.84M.
• Technical analysis: Support at ₹690, resistance at ₹850.
• Risk factors: Debt management , lumpy revenue, market volatility and cyberattack and regulatory headwinds.
• Buy above: ₹910.
• Target price: ₹945.
• Stop loss: ₹890.

Blue Star Ltd (current price ₹2008.20) – Buy above ₹2010, stop ₹1975 target ₹2090 (Intraday)

• Why it’s recommended: Blue Star move over the last few days show that after some muted Q1 numbers, a volatile scenario emerged indicating that the trends after being under pressure is now recovering. However , with the nature of the prices seen in the last few days we can comprehend that the newsflow has already been prices in. The volatile moves seen in the last 3 months continue to indicate a possibility of an upward bounce as a rounding pattern is seen forming with volumes. Can look to go long.
• Key metrics:
  • P/E: 92.19,
  • 52-week high: ₹2419.95
  • Volume: 594.85K
• Technical analysis: Support at ₹1875, resistance at ₹2280.
• Risk factors: Product concentration, heavy reliance on its traditional distribution network, volatility in raw material prices, and stiff competition
• Buy above : ₹2010.
• Target price: ₹2090.
• Stop loss: ₹2550.

Trends revival takes a breather?

India’s midcaps showed a modest but positive performance in October, characterized by a mixed stock market environment that nonetheless indicated cautious optimism among investors.

The BSE Midcap index, a key indicator of Midcap stock performance, registered a slight rise of around 0.09% recently and an increase of 0.86% over the past five days as of late October. This suggests a gradual upward trend in the Midcap segment despite some volatility, with a mixed advance-decline ratio of stocks highlighting a cautious market mood.

Midcaps’ overall historical tendency shows resilience in October, with data revealing that in 12 out of the last 17 years, the BSE Midcap index has posted positive returns, signifying October as a relatively strong month historically for Midcap investments.

The Nifty Midcap 150 index, which represents around 16.45% of free float market capitalization of NSE-listed stocks, provides a broader benchmark of Midcap performance. As of October 24, 2025, the Nifty Midcap 150 stood around 21,951 points with modest weekly returns averaging 0.75% for the past month and a stronger 8.46% gain over the past six months, reflecting sustained Midcap interest. However, the three-month return showed a slight dip of -0.04%, indicating some short-term correction or volatility within the sector. The index’s 52-week high was near 22,100 points, with a low near 17,269 points, demonstrating the range of volatility Midcap stocks experienced over the year.

Investors are closely monitoring upcoming earnings reports from key Midcap companies scheduled this week, which could potentially steer market sentiment and trading activity further.

The Midcap sector acts as an important mid-sized market indicator, often reflecting the growth potential faster than large caps but with higher volatility. Its mixed performance in October 2025 reaffirms the sector’s sensitivity to broader economic factors and company-specific results, making it a dynamic space for active investors.

Overall, October 2025 for Midcap stocks in India is seen as cautiously optimistic, with positive albeit modest gains, notable company-specific performances, and key earnings reports on the horizon that may influence future trends.

Outlook

In summary, the midcap segment has takes a breather after a robust momentum on the NSE, supported by improved liquidity, lower GST rates, and broad-based earnings growth in Q2FY26, though investors should monitor margin trends and sector-specific growth rates in coming quarters.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.