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

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

Indian Market
by 5paisa Research Team Last Updated: 2022-10-31T15:23:43+05:30

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 October turned out to be an electrifying one as investors bet on another jumbo rate hike from the US Federal Reserve by the end of the year is starting to fade. The other positive catalysts were: The US Dollar index eased and retreated from higher levels, the crude oil prices trading below USD 90 a barrel and the 10-year US Treasury yields seen descending from their multi-year high. Along with this, buying from DIIs have continued to outplay the FIIs as DIIs so far have turned net buyer to the tune of Rs 10,348.07 crore as a result, the Nifty50 index has logged its best October since the year 2018 as it has jumped over 5%.

Going forward we reiterate and firmly believe that the Samvat 2079 is likely to bring more joy and abundance for investors at Dalal Street. That said, volatility is likely to be a hallmark for the month of November as the US Federal Reserve’s policy outcome is scheduled on November 02. After Fed’s action, the focus will immediately shift to the RBI MPC's unscheduled meeting on November 03 as it has to explain to the government why it failed to achieve the mutually set inflation target for three straight quarters. Considering this we have chalked down a list of the top three stocks from the BSE Midcap segment, that should be on your watchlist as these stocks tend to witness good moves during November.

Important point: Stocks are selected from the BSE Midcap. 

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

ZEEL: Historically, the stock of ZEEL has been an outstanding performer in the month of November. Out of 20 occasions, it has managed to deliver positive returns on 15 instances. Moreover, the average gains registered by this stock in November is about 8.03%, while the cherry on top is that the stocks' maximum return for November in the past years has been an eye-popping 23.60%. Interestingly, the stock recorded five consecutive positive years of gain in November.

Trent: The stock registered a fresh high on Monday and it has gained over 6% in the month of October. If we go by the historical performance of the stock in November, the stock has delivered an average of nearly 14% gains, while twice it has seen consecutive positive years of returns, which is commendable.

Voltas: Historically, the stock of Voltas has delivered a handsome performance in the month of November as out of 20 occasions, it has managed to deliver positive returns on 14 instances. The stock’s average return was nearly 13% with a maximum gain of 30.40% in November.


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About the Author

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

Disclaimer

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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