6 F&O Stocks to Watch in September: Seasonality & Technicals

Six Futures and Options (F&O) stocks are signaling potential significant movements in September, driven by a compelling mix of historical seasonality and current technical analysis. These candidates warrant attention from traders monitoring momentum shifts.

Seasonality analysis, which reviews a stock’s past performance during specific calendar periods, provides a valuable filter. However, it must always be used in conjunction with technical indicators, not as a standalone trading signal.

Bullish Momentum Candidates

Three stocks are identified with a bullish bias for September, exhibiting strong historical returns and positive technical setups.

• PG Electroplast (PGEL): This stock has historically delivered an average September return of 14.25%, closing positively in 64.29% of the analyzed years. Technically, PGEL shows a bullish breakout from a falling channel, indicating a potential end to its corrective phase.
• Mazagon Dock: Demonstrating a robust seasonal pattern, Mazagon Dock has an average September return of 11.26%, with an 80% positive observation ratio. Its chart suggests a Dow Theory type bullish reversal, as the price attempts a higher high after a series of lower highs.
• TVS Motor: Identified as the most consistent bullish seasonal candidate, TVS Motor records an average September return of 8.97% and an impressive 93% positive ratio. A bullish breakout above a horizontal trendline indicates absorbed selling pressure at that level.

Bearish Outlook Stocks

Conversely, three F&O stocks are presenting a negative seasonal bias for the month, reinforced by their technical structures.

• Bharat Dynamics (BDL): BDL holds a negative seasonal bias for September, with an average return of -5.72% and only 37.5% positive years. Technical analysis supports this, showing a lower high structure that signals weakening momentum.
• HDFC AMC: This stock also exhibits a negative seasonal bias in September, with an average return of -4.72% and only 37.5% positive years. Technically, HDFC AMC is reversing from a multi-resistance zone, suggesting active seller defense.
• Nippon Life Asset Management India (NAM India): Completing the bearish list, NAM India has an average September return of -4.06% and a 37.5% positive-year ratio. Its technical setup reveals a “fake-out” followed by a breakdown of a rising trendline, indicating waning bullish momentum.

While seasonality offers a useful framework for identifying potential market shifts, its role remains that of a filter. Traders should consistently integrate current technical structures for comprehensive analysis before making trading decisions.