Top 5 stocks to watch out in March based on seasonality trend

Top 5 stocks to watch out in March based on seasonality trend

by 5paisa Research Team Last Updated: 2022-02-28T17:01:11+05:30

Volatility has raised its ugly head. Want to know which stocks are likely to weather the storm and deliver alpha returns in March.

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.

As we are about to step into the month of March, we will check out which are the top five performing stocks based on seasonality analysis this month. This will help you to know which stocks to keep on your radar for the month.

Important point: Stocks are selected from the Nifty 500 index.

Here are the Top 5 stocks to watch out for in March based on Seasonality Trend:

Dr Reddy’s Laboratories: Historically, the stock of Dr Reddy’s Laboratories has performed well during March. As out of 20 occasions it has managed to deliver positive returns on 16 instances. Moreover, the average change for this stock in March is 6.10%.

Kansai Nerolac Paints: The performance of Kansai Nerolac Paints is outstanding in the month of March. The stock has closed in green 15 out of 20 instances. Moreover, average gains for the stock in March stands at a whopping 10.52%. Hence, market participants can keep this stock on their radar, because if history repeats itself this stock can do wonders.

Shree Cement: The stock of Shree Cement tends to perform well during March. As the stock has closed in green 14 out of 20 instances in the past. The stock’s average return in March is 14.80%.

Praj Industries: The performance of Praj Industries is similar to Shree Cement when it comes to positive closing for March as the stock has closed in green 14 out of 20 instances. But the average returns are quite fascinating as average gains for the stock in March is 16.69%.

Sun Pharmaceutical Industries: The performance of Sun Pharmaceutical Industries is similar to Shree Cement and Praj Industries when it comes to positive closing for March as the stock has closed in green 14 out of 20 instances. Meanwhile, the average return for March stands at 6.27%.

 

Also read: Five Largecap names that investors should keep an eye on today!


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