Stock picks of the day: Time to buy quality midcap stocks in a staggered manner

Equity benchmark witnessed strong up move since last Friday as buying demand emerges near the major support area of 10,600, but it failed to hold on to gains.

We believe that the temporary breather towards 11,000-10,900 (i.e. 50% retracement of the last three sessions up move from 10637 to 11141) should be used as an incremental buying opportunity for up move towards 11,200 levels in coming weeks.

In the current context, the index witnessed a sharp bounce after correcting 12 percent over the past 12 weeks, in the process most of the pessimism has been overdone in the index.

Going forward, we expect the index to continue with its outperformance so we advise investors to accumulate quality midcap stocks in a staggered manner.