There is going to be a rotation in the midcaps: Sanjeev Agarwal

Sanjeev Agarwal, Director, Dynamix Research and Capital Management in a chat with ET Now talks about the textile stocks.

If you look at any of these smaller stocks particularly from the textile space do you think that gains like 20% in one day’s time or even 40% in two days is too much?

There is going to be a rotation in the midcaps. The buying is coming in chunks, for example, whenever you start buying in some of the stocks that space starts buzzing and does well and after that it goes in a sideways manner. It is generally consolidate. These kind of buying spurts are coming in all kind of spaces so after a strong rise most of these counter will go in a sideways manner.

It will slowly lose some of its gains so do not immediately go into a counter which has already risen very strongly and after that wait for the consolidation if there is any trading move that has to happen because current market is where its not a traders market. Its a very-very difficult market to trade because you have very strong range bound movements, very limited volatility during the day and for last three-four days we are stuck up between 5150 to 5090 and it has been a very small range where Nifty has been stuck. Its better to stay away with these counters at the moment.