How To Figure Out Sectors That Will Trend Up or Down

find trending stocks and sectors

Discovering sectors that are trending or about to start trending can help investors and traders enter into several profitable trades.

Sector stock analysis helps investors learn about the type of stocks that operators and other biggies are accumulating. The accumulation by the biggies can be anything – better financial condition for the companies going ahead (long term prospects) or for the for a quick short term trade.

Whatever reason it may be, sectoral analysis helps investors judge how well stocks in the different sectors will perform in the near-long term.

The analysis would be even sharper and trades more profitable if the data was available live, and based on micro sectors.

Well, you’re in luck, because there is a website that breaks down sectors into micro sectors and helps in your quest.

For example, if the two wheeler segment in the auto sector is trending up, it helps you latch on to two wheeler stocks, and so on.

Before I discuss this website, know that many folks who analyze sectors often refer to sites that give the macro picture.

For example, what use is information that the auto sector is trending up when the sector is up because only 2 wheelers are in an uptrend?

I’m sure you will agree that analyzing micro sectoral data than analyzing the macro data.

There is only one website that displays this helpful information – and it is the BSE.

You also can drill down into any micro sector and figure out the stocks that are performing and separate these from the duds.

Best of all, it allows analyze information of 111 micro sectors spread over 4 pages!

CASE STUDY OF ANALYZING MICRO SECTORAL INFORMATION

hw to analyze trending sectors

EOD data of 8 June 2018 suggested that the banking sector was very hot and could see an uptrend.

how to discover sector trends india

At 9.25 AM on 11/6/18, we can see that three sectors are in an uptrend. Auto Parts, Banks and Cement. Banks had trended up on 8/6/18 and the sector seems bullish even today. Auto Parts and Cement too are trending up.

how to figure out stock trends

You can click on each micro sector to figure out which stocks are doing well, and which aren’t.

how to research sectoral trends

At 11 AM on 11-8-18, the trend in Banks, Auto Parts and Cement has gotten stronger with more stocks joining the party. Commodity chemicals too seem to be bullish.

how to figure out which sector is hot

It’s 12.15 PM now and barring Cement, which is fizzling out, Auto Parts, Bans and Commodity Chemicals are still signalling an upmove.

CONCLUSION

This is how you figure out trending sectors. The next steps would be:

  1. Figure out the performing stocks per sector.
  2. Check their technicals using our setup, or any setup you are comfortable with.
  3. Analyze Options Chain for FNO stocks.
  4. Keep checking every 15 minutes in the live market and at EOD and make a list of stocks that look bullish or bearish (do not forget to check sectors that are trending down so that you can hedge your long bets).
  5. Paper trade and check this strategy out for at least a week before you are convinced of its usefulness.

7 Comments on "How To Figure Out Sectors That Will Trend Up or Down"

  1. good info.

  2. Sir,
    You give us new knowledge everyday. Bullbull.in has become a must visit website everyday. Thanks a lot.

  3. Good one sir.thanks for the info.

  4. Pankaj gupta | June 12, 2018 at 3:05 am | Reply

    Good learning

  5. Very informative. Everyday something to learn from u. Thanks for the selfless service.

  6. Rama Shankar Prasad | October 14, 2018 at 1:48 pm | Reply

    Do you provide to open trading/demat account

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