How can I use Seasonality Insights to make investing or trading decisions?

Seasonality Insights helps you identify historical patterns in the performance of stocks, indices, ETFs, and commodity futures during different timeframes of the year. By analysing how a stock, commodity, or ETF has performed across multiple years, you can identify historically strong or weak timeframes and use that information as part of your research process.

The Top Stocks section helps you discover stocks that have performed well during a selected month over the years. For example, in June, Mahanagar Gas has been positive in 70% of the times analysed and has delivered an average June return of 4.1%. These metrics can help you identify stocks that have shown relatively consistent seasonal strength.

Consider the example of NIFTY Pharma shown in the Seasonality Chart.

The chart displays monthly returns across multiple years, helping you understand how the index has historically performed during each month. The + Yrs % and - Yrs % rows show how frequently a month has delivered positive or negative returns, while the colour-coded heatmap highlights the strength of those returns.
In this example: Historically, July has been a positive month for NIFTY Pharma 86.7% of the time. Several years have also recorded strong gains during July, suggesting that the month has historically been favourable for the Pharma sector.
Similarly, April and June show a + Yrs % of 75%, meaning the index has generated positive returns during those months. On the other hand, January and February have a + Yrs % of only 37.5%, indicating that the index has historically delivered negative returns more often than positive returns during those timeframes.
Using these insights, an investor or trader may choose to:
Monitor a sector more closely before historically strong months.
Shortlist stocks within that sector for further analysis.
Look for technical or fundamental confirmation before entering a trade.
Exercise greater caution during historically weak periods.

What If...

Scenario	Explanation
A month has a high Positive Years % but a low Average Monthly Return	The instrument may have delivered gains consistently, but the gains may have been relatively small.
A month has a high Average Monthly Return but a lower Positive Years %	A few exceptionally strong years may have influenced the average return.
A historically strong month performs poorly this year	Seasonal trends are based on historical observations and may not repeat in every market cycle.
Can I use Seasonality Insights as a standalone buy or sell signal?	No. Seasonality Insights should be used alongside other forms of analysis and risk management.

Last updated: 23 Jun 2026