Top 3 midcap stocks to watch out for in August based on seasonality trend

Top 3 midcap stocks to watch out for in August based on seasonality trend

by 5paisa Research Team Last Updated: Dec 13, 2022 - 03:19 pm 20.7k Views
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We know the fact that only a handful of traders manage to make consistent profits. And what separates a consistent trader from an inconsistent one is the strategy and discipline to follow the trading strategy.

In this fast-paced society where several trading tools can be accessed with a one-click, ideas on how to succeed are in abundance. However, the over availability of tools and studies can become a double-edged sword, as it sometimes leads to analysis paralysis.

In this article, we will share a list of stocks based on a very simple yet effective strategy, one that would help you to strengthen the probability of success in trading.

The technique is seasonality analysis and helps to tell which stocks have performed well during a particular month. And as the saying goes ‘history tends to repeat itself; it is expected that the stock is likely to perform well as it has done in the past during that particular period.  

The month of July turned out to be a jubilant one for the Indian benchmark indices with Nifty gaining nearly 9 and ended its three months losing streak. The Nifty reclaimed its important psychological mark of 17,000 and more importantly, the BSE Midcap Index outperformed as it logged gains of double digit and as the concerns are abating, it is expected the Midcap Index might continue its journey northward, hence, has select some interesting stocks from the BSE Midcap Index based on seasonality.

So, here are the stock to keep your focus on for the month of August, 2022.

Important point: Stocks are selected from the BSE Midcap Index.

Here are the top 3 stocks to watch out for in August based on seasonality trends:   

SRF: Historically, the stock of SRF has been an outstanding performer in the month of August as out of 20 occasions, it has managed to deliver positive returns on 17 instances. With six time registering consecutive positive year. Moreover, the average gains registered by this stock in August is about 12.48%, while the cherry on top is the stock max return for August historically has been an eye-popping 27.50%.

TrentThe stock of Trent has been performing well as the stock had registered gains of 16% in the last one month, while YTD gains stands at 23.30%. coming to performance of the stock for the month of August, it is also top notch as historically the stock has gained 13.17% gains, while 14 out of 20 times it has managed to eke out positive gains in the month of August. Furthermore, the stock has seen seven consecutive positive years of returns, which is commendable.

Bharat ForgeThe stock has gained more than 12% in the month of July. If history is to be believed then it is likely that the stock might continue its momentum. As the stock has closed in green 14 out of the 20 times in the past. The stock’s average return in August is 9.56%.

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About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

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Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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