Top 5 midcap stocks to watch out for in May based on seasonality trend

Top 5 midcap stocks to watch out for in May based on seasonality trend

by 5paisa Research Team Last Updated: Dec 10, 2022 - 06:56 pm 29.6k Views
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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.

We know the fact that only a handful of traders manage to make consistent profits. What separates a consistent trader from an inconsistent trader is the strategy and discipline to follow the trading strategy.

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. This technique 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.

In April 2022, the benchmark indices exhibited volatility amid subdued Q4 earnings, hawkish central banks and the resurgence of Covid cases in China, as a result, Nifty logged losses of 2.07% in April. However, the performance of Midcap index was resilient as it relatively outperformed the frontline gauge. Hence, we have chalked down top performing stocks from Midcap in May based on seasonality analysis. This will help you to know which stocks to keep on your radar for the month.

Important point: Stocks are selected from the BSE Midcap.

Here are the top 5 stocks to watch out for in May based on seasonality trends:

Mphasis: Historically, the stock of Mpahsis has performed exceptionally well during May. Out of 20 occasions, it has managed to deliver positive returns on 14 instances. Moreover, the average gains registered by this stock in May is about 12.31%, while the cherry on the top is the stock has witnessed 6 consecutive positive years in May.

Zee Entertainment Enterprises: The month of April was not a favourable one for this stock as the stock declined by nearly 14%, however, history suggests that May tends to be a fruitful one for the stock. The scrip has closed in green 13 out of 20 instances. Moreover, average gains for the stock in May stand at a whopping 9.76%. Hence, market participants can keep this stock on their watch list, because if history repeats itself this stock can be a good bet.

Federal Bank: The bank is going to report its quarterly numbers on May 06, 2022, and more so, the month of May generally tends to be an upbeat one for the stock. As the stock has closed in green 12 out of 20 instances in the past. The stock’s average return in May is 18.67%.

ACC: The performance of ACC is similar to Federal Bank when it comes to positive closing for May as the stock has closed in green 12 out of 20 instances. But the average return for this stock stands at 5.87%.

Container Corporation of India: The performance of Container Corporation of India is similar to Federal Bank and ACC when it comes to positive closing for May. The scrip closed in green 12 out of 20 instances. Meanwhile, the average return for May stands at 11.27%.

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