These mid-cap stocks with ‘Strong Buy’ & ‘Buy’ recos can rally over 38%, according to analysts

As the Q3 earning season kicks off, investors with exposure to mid-cap stocks need to focus on a couple of things. One, how is the street treating disappointments? If the reaction is limited to the stock concerned and does not sustain beyond one or two trading sessions, take it as a bullish sign. If, on the other hand, disappointment with one stock leads the street to punish the whole sector, it suggests there are more institutional investors waiting to sell. In such a case, expect a correction. So, this earning season, be watchful and stay with selected stocks. Also, make sure that you don't sell just because of short-term narratives governed by price action.