Relevant for Exams
Smallcap stocks show historical 3.55% average returns with 100% success in year-end "Santa rally".
Summary
The article discusses the "Santa rally" phenomenon, where smallcap stocks historically outperform at year-end, averaging 3.55% returns with a 100% success rate. Technical indicators suggest a comeback for smaller stocks, with market breadth favoring them. This analysis of seasonal market patterns is relevant for understanding financial market dynamics, particularly for banking exams, but holds low general competitive exam significance.
Key Points
- 1Smallcap stocks consistently outperform during the year-end "Santa rally" period.
- 2Smallcap stocks averaged 3.55% returns during the year-end "Santa rally".
- 3They achieved a 100% success rate in outperforming during this seasonal rally.
- 4Technical indicators suggest smaller stocks are currently poised for a market comeback.
- 5Market breadth is reportedly tilting in favor of smaller stocks.
Full Article
Historical data reveals smallcap stocks have consistently outperformed during the year-end Santa rally, averaging 3.55% returns with a 100% success rate. Technical indicators suggest smaller stocks are poised for a comeback, with market breadth already tilting in their favor. The Nifty also shows potential for an upward move, aligning with the repeatable seasonal pattern.