The Nifty Midcap 150 index has cracked nearly 7 per cent thus far in September, after gaining over 21 per cent in the April to August 2026 period. The index, which registered a new high at 23,647.50 on August 26, 2026 on the NSE now trades below its 200-day moving average at 21,870 levels.
Generally, the 200-DMA indicator helps determine a bullish or bearish trend; stocks or indices quoted above the average are termed bullish and vice versa.
The index has witnessed a sharper fall in September compared to the Nifty 50, which declined 6 per cent, and the Nifty Smallcap 250 that slipped 3.5 per cent.
“Crucial levels have been broken all across, be it the Nifty or the mid, small-caps. There could be more pain ahead. The midcap index can slip another 5 per cent if adverse conditions persist,” he cautioned.
KEI Industries, Godrej Properties and Suzlon Energy were the other major midcap losers, down 17-21 per cent thus far in September, data shows. A total of 32 stocks declined more than 10 per cent this month.
On the other hand, Patanjali Foods was among the major gainers, up 13 per cent followed by Blue Star and Jindal Stainless, which gained 8 per cent and 6 per cent, respectively, according to data.
Investors must also keep in mind that the correction in the midcap space has come after a sharp rally seen since April 2026, said Ajit Mishra, senior vice-president for research at Religare Broking.
For the Nifty Midcap 150 index, 21,550 is the key level to watch, said Nandish Shah, deputy vice-president at HDFC Securities who remains cautious on the road ahead.
“A break below this level, which seems unlikely as things stand, can take the index to 21,230 levels. One must also keep in mind that the September fall has come after a sharp rally of 5 months in the index. A lot will depend on the upcoming results season, which a lot of investors expect to be good. Any small disappointment can trigger a big correction in SMIDs,” he warned.
