One of my friends wanted me to do sectoral analysis, here it is. After knowing Nifty strength and direction,  All you need to do is to do relative strength analysis with Nifty as base. So lets get started with weekly analysis…

NSE Auto

Auto has a tendancy to outperform (200 EMA of relative strength is above 0), But since Oct 2016 it has been showing weakness. Right now, its definitely weak. But looking at long term, it may be in first group to show outperformance.

Expect support at 6850 and 7500.

NSE Bank

This is another sector which usually outperforms. But it has started underperforming very recently. On weekly charts only 2 weeks back it broke the trendline (while Nifty showed it way earlier)

But currently this sector definitely is underperforming.

NSE Energy

This sector is a nice candidate to short. In longer term It usually underperforms except for last 5 years. And now it shows trigger that it may start underperforming. I like the divergences here. It also is about to break the trend line (Full candle below trendline). With a target of 8100. This gives nice 5:3 risk reward.

NSE FMCG

This guy is not saying much through charts. I expect it to go sideways for now. If and When it breaks 24,200. The story may be little more clear.

 

NSE Infra

This is classic underperformer. It has started outperforming Nifty since Aug 2018. Since the time Nifty started cracking, hopeful buyers hhave started looking at cracked underperforming stocks and have tried buying them. But they don’t understand that they are catching the falling knife. I see high probability it breaking its support at 1830 and then breaking massively. If someone wants to bet on downside, just wait till it breaks this support and then you will enjoy the ride.

 

NSE IT

If you have compulsion to be in market, here is a sector you could plan to be. But be careful as overall market is weak.

NSE Metal

This is another sector which may give good risk to reward for going short. But please be careful as it is just now broken the downward trendd line and may actually go up. I don’t recommend this sector for either going long because if its history… You may just want to wait and watch this sector.

 

NSE Pharma

Another sector like IT which can show strength. But be careful, its very close to its support line.