This penny stock could be the ‘dark horse of December month; do you own it?

We have witnessed only about seven trading sessions yet in the month of December but the stock has already surpassed its last two months’ volume, which is quite profound!

The performance of Vodafone Idea Ltd stock is not hidden from anyone as the stock has been one of the best performers in the month of December 2021. The stock, so far in the month of December, has delivered returns of whopping closed to 47.51 per cent. Along with this strong upmove, it has also witnessed a multi-month breakout.   

We have witnessed only about seven trading sessions yet in the month of December but the stock has already surpassed its last two months’ volume, which is quite profound! You would be surprised to note that despite discussing so much about the outstanding performance of Vodafone Idea, this article is not about this stock, but instead about the famous ADAG stock i.e. Reliance Communications.   

Reliance Communications, on Thursday, got locked at a 20 per cent upper circuit limit on the back of the highest single-day volume since July 27. The stock recorded a volume of nearly about 14.43 crore, which increased more than seven-fold when compared to its 30-day average volume.  

On Thursday, the stock opened at a level of Rs 3.05 and made an intraday low of Rs 3 as well as a high of Rs 3.60. With this strong upmove, it has touched a level, which was last seen in the latter part of July. The stock is trading above its 20, 50, and 200-DMA.   

After going through the seasonality analysis, we came across an interesting observation that is worth sharing. On average, the stock has delivered 15.1 per cent returns in the month of December. Delivering its best performance, the stock had jumped a staggering 186.9 per cent in the month of December 2017. So, considering the momentum and strong volume witnessed, this might turn out to be the ‘dark horse’ of December month.