Mega Sectorial

Analysis

25th Dec,2022

Baby Bulls Capital Management

SECTOR WISE ANALYSIS

• S&P BSE METAL 3

• S&P BSE PUBLIC SECTOR 4
• S&P BSE FMCG 5
• S&P BSE TELECOM 6
• S&P BSE INFORMATION TECH 7
• S&P BSE ENERGY 8
• S&P BSE AUTO 9
• S&P BSE HEALTHCARE 10
• S&P BSE COMMODITIES 11
• S&P BSE INDIA INFRASTRUCTURE 12
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S&P BSE METAL

S&P BSE Metal Index Has closed at the lower end of a Major Support Zone
on Daily Charts. Recommendation to move out of the Sector at All Time
Highs was given last to last week. Last Week, support zone getting
tested was expected. There are no signs of bounce or strength yet.
Only after seeing a Bounce and more importantly sustaining of the
same, it can be a favorable Risk-Reward Opportunity to add exposure.
Closing below the Support Zone would be a bearish sign in Metals.

The Sector will be Weak and in a Downtrend below 19000.

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S&P BSE PUBLIC SECTOR INDEX

S&P BSE Public Sector Index Has a Strong Support Zone at 8900 - 9250.
A Bounce can be witnessed going forward near 9000 Levels. After seeing
a Bounce and sustaining of the same, it can be a favorable Risk-
Reward Opportunity to add exposure to the Sector. The Sector can
show further retracement and sell off in short term. After Testing 9000
and exhaustion of selling, it can get ready for a Move as a Structure of
Breakout + Retest.

The Sector will be Weak and in a Downtrend below 4300

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S&P BSE FMCG

S&P BSE FMCG Index broken down the Support Zone at 16300 - 16500.
The Sector is on the verge of a Breakdown or Reversal and is currently
sitting at a trend line support. Closing has indicated a likely sell off further
to be expected in the sector below 16000 Levels. A Reversal is too early to
be called at. If the Trend line is respected and the Sector is able to come
above the Support Zone, only then a successful reversal can be sustained
going forward.

The Sector looks Weak and will continue the Downtrend below 16000.
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S&P BSE TELECOM

S&P BSE Telecom has given a breakdown from an Ascending Triangle

Pattern on Daily Charts which was presented last week. The Previous Low
of 1780 has been broken a Major Sell off has been witnessed in the last
week. The Next Support Levels are visible at 1630 and 1560. 1600 level is
a Major Level for Telecom Sector on Higher Timeframe. The Monthly
Candlesticks Pattern forming is now a Bearish Engulfing which is a Bearish
Sign and reflects more pain going forward

The Sector is currently in a Downtrend.

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S&P BSE INFORMATION

TECHNOLOGY

S&P BSE Information Technology Index Has broken a Support Zone at

28100. The Sector had failed a Major Breakout, which is often one of the
Major Bearish Signs for any stock or sector on Daily or Weekly Timeframe.
The Sector can test its September lows or fall even further. Currently,
27000 is expected on the IT Sector which shows that the sell off can
continue for a couple weeks. Only if a Good Base is formed by testing
26750, the Sector can show a reversal and head to higher levels. Till then
the outlook remains bearish for Short Term.

The Sector looks Weak and is in a Downtrend currently.

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S&P BSE ENERGY

S&P BSE Energy Index has faced rejection from the Resistant Trend line of
a Rising Wedge on Weekly Timeframe. The Sector has a minor support at
8250. In spite of this, the Sector can test the Supportive trend line in the
coming few weeks. The Sector looks weak as Bulls have given up and test
of Support is the next step going forward in order to reclaim strength.
8200 can be expected to be tested in the next couple of weeks. Although
short term pain is visible, the Sector is not negative for mid-term.
Bouncing from Supportive trend line and sustaining of support will be a
favorable Risk-Reward Opportunity to add exposure to Energy Sector.

The Sector will be Weak and in a Downtrend below 8700.

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S&P BSE AUTO

S&P BSE Auto Index has tested the Support zone mentioned last week.
Currently it is at the verge of Breakdown or reversal and the next week
will decide the direction for this sector. Only after a Good Base is formed,
the Sector can show a reversal and head to higher levels for the target of
31000. Failing the support zone near 28000 Levels and breaking 27700
will not be a good sign for the sector. Whereas a Doji forming in the next
week can reflect exhaustion in selling and can turn into an opportunity if
Auto Sector holds 27000 Levels.

The Sector will be Weak and in a Downtrend below 27700.

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S&P BSE HEALTHCARE

S&P BSE Healthcare Index is in a Downtrend on Daily Charts. The Sector

is respecting a Falling Trend line as Resistance. The stance remains the
same as last week. Below 23000 Levels, it can show a 1000 points fall
heading to 22000 Levels and continuing the Downtrend. Until the Breakout
of the Downward Trend line is witnessed and sustained, the Sector may
not show aggressively bullish signs and bounces may fade away like it did
last week. If a Base is formed near 22000 Levels and a Bounce is seen, it
can be a favorable Risk-Reward Opportunity to add exposure to the
Sector.

The Sector will be Weak and in a Downtrend below 23000

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S&P BSE COMMODITIES

S&P BSE Commodities Index has failed a Breakout on Daily Charts. The
Support has been broken aggressively. Only after a bounce is witnessed
and sustained from 5300, the Sector can show a reversal and head to
higher levels. As of now, no Bullish signs are visible. Sustaining Below
5300 will open the Doors Fresh All Time Lows on the Commodities Sector.

The Sector is near previous lows and 5300 level acts as the cut off level.
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S&P BSE INDIA INFRASTRUCUTRE

S&P BSE India Infrastructure Index has faced Strong Rejection from the
Supply Zone at 307-315. The sector doesn’t look good as the Breakout is
failed on Daily Charts and faded away new highs. It is currently at a minor
Support Zone of 285 on Daily Timeframe. The Next Support near the
previous lows near 270 Levels. It is not necessary that 270 mark will be
tested definitely, the Sector can reverse before if the markets get stable
after the recent pullback. If the major indices continue to remain weak
and aggressively bearish, test of 270 is inevitable. One should wait for a
strong bounce near either of the Support Zone on Infrastructure Sector to
capitalize.

The Sector will be Weak and in a Downtrend below 5650.

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