Top three small-cap stocks to watch out for in August based on seasonality trend!

Top three small-cap stocks to watch out for in August based on seasonality trend!

Karan Dsij
/ Categories: Trending, Mindshare

Here are the top three small-cap stocks to watch out for in the month of August

The first half of the calendar year 2022 turned out to be a brutal one for the Indian benchmark indices as Nifty cracked 9 per cent amid red hot inflation, gloomy global situation, and continuous outflow from the FIIs. However, July was different as Nifty logged gains of 8.73 per cent, and with this, it ended its three-month losing streak. Moreover, July 2022 was the best July since 1999 and the second-best ever.    .

Talking about the broader market performance, BSE Smallcap index outperformed the frontline gauge by advancing over 9 per cent in July. Given the fact that Small-Cap outperformed the frontline gauge on the very first trading of August, we expect its continued outperformance; hence, we have chalked down a list of stocks to watch out for based on seasonality. 

Here are the top three small-cap stocks to watch out for in the month of August:  

BASF India: The stock on average has delivered gains of 9.57 per cent with a positivity rate of 90 per cent as out of 20, it ended in green in the month of August on 18 instances. So, the probability suggests that the stock may continue to deliver handsome returns in August 2022.     

Avanti Feeds Limited: Historically, the stock of Avanti Feeds has been an outstanding performer in the month of August as out of 20 occasions, it has managed to deliver positive returns on 16 instances. Moreover, the average gains registered by this stock in August is 15.94 per cent while the cherry on top is that its maximum return for August historically has been an eye-popping 44.40 per cent.     

VIP Industries Limited: The stock ended with a loss of 3.65 per cent in the month of July. However, if history is to be believed, then it is likely that the stock might change its course in the month of August as it has closed in green 16 out of the 20 times in the past. The stock’s average return in August is 15.86 per cent.      

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