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

Despite a turbulent first half of the month of December, the bulls on D-Street managed to pick themselves up and staged a strong comeback amid improved global cues with Nifty gaining more than 2 per cent on an MoM basis in December.  

Meanwhile, the broader market indices also delivered a positive return in the month of December. Both Nifty Midcap 100 and Smallcap 100 outperformed the headline index. However, the show stopper for the month of December was Nifty Smallcap index as it jumped over 5.5 per cent and with this, it ended its two-month losing streak.   

Considering the fact that the month of December has been a wonderful month for small-cap stocks, we believe that this trend would continue. Hence, we have curated a list of stocks that might outperform in the month of December. This list is based on BSE Smallcap index.     

Meanwhile, it’s important to note that these stocks have been selected based on the seasonality analysis.    

Apollo Tricoat Tubes: The stock delivered an average gain of 26.22 per cent with a positivity rate of 71.43 per cent as 5 times out of 7 times, the stock has ended in green in the month of January. So, the probability suggests that the stock may continue to deliver handsome returns in the month of January.     

Hatsun Agro Product: The stock made an all-time high in the month of September 2021 and thereafter, it has been witnessing a counter-trend phase. Besides, the stock has underperformed in the month of December as it plunged 5 per cent but seasonality suggests that January could be the month where the stock could change its tide as the stock has delivered an average gain of 11.90 per cent with a positivity rate of 68.42 per cent as 13 times out of 19 times, the stock ended in green in the month of January.    

Radico Khaitan: What a beautiful performance the stock has delivered in the month of December as it jumped 9 per cent! The seasonality trend suggests that the stock could continue its bullish trend as on average, it has delivered gains of 10.57 per cent with a positivity rate of 66.67 per cent as 12 times out of 18 times, the stock ended in green in the month of January.