Buy in midcap and small cap space: Deven Choksey

Deven Choksey, MD, K R Choksey Securities in a chat with ET Now gives his take on midcap and small cap space.

Do you suggest that one can buy a call on midcap and small cap space?

Yes, importantly that some of these stocks have ended up picking up right now more because in this year money making is going to be difficult. The midcaps no doubt have performed in last two months but the same speed at which they have performed in two months cannot be accepted in next few months as well.

So one will have to look at the valuation perspective and then possibly take some of these stocks in its favour and that is how I ended picking up because a lot of companies are good for about 25% to 30% appreciation in this financial year.

Maybe in the short term, you can probably see a bounce back in the market because of the neglected performance of some of the large cap companies. It is probably because of non-inclusion of these companies into portfolio which will happen now. So some of these companies can give short term return and one year down the line, a good return also. One can definitely consider for playing some amount of options strategy on these companies as well.