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Trend analysis of various sectors

Howdy!

Here’s my first thread on this forum. I have been a long time visitor to this forum but never started a topic.

I am an engineer who got interested in investing partly inspired by my father and partly by my uncle (@hitesh2710). I am still learning the art of reading financial statements and assigning a value to a company. Being an engineer, I am also interested in quantitative aspects of technical analysis.

I was analysing various sectors which have companies either in medium term uptrend or medium term downtrend and have computed a list of sectors with companies in momentum on either side.

Following is the sector-trend data. I have computed trends based on medium term horizon. Data is for top 1000 companies by market cap listed on NSE.

Sector Total Companies Companies in Uptrend Companies in Downtrend
Seeds 1 total companies 1 companies in uptrend 0 companies in downtrend
FMCG - Household Products 2 total companies 1 companies in uptrend 0 companies in downtrend
Employment Services 2 total companies 1 companies in uptrend 0 companies in downtrend
FMCG - Personal Products 8 total companies 4 companies in uptrend 2 companies in downtrend
Footwear 5 total companies 2 companies in uptrend 2 companies in downtrend
Oil & Gas - Refining & Marketing 6 total companies 2 companies in uptrend 1 companies in downtrend
Online Services 3 total companies 1 companies in uptrend 1 companies in downtrend
Restaurants & Cafes 3 total companies 1 companies in uptrend 1 companies in downtrend
Communication & Networking 3 total companies 1 companies in uptrend 1 companies in downtrend
Pharmaceuticals 50 total companies 14 companies in uptrend 13 companies in downtrend
Private Banks 18 total companies 5 companies in uptrend 3 companies in downtrend
Retail - Department Stores 4 total companies 1 companies in uptrend 0 companies in downtrend
Four Wheelers 4 total companies 1 companies in uptrend 0 companies in downtrend
Two Wheelers 4 total companies 1 companies in uptrend 0 companies in downtrend
Stationery 4 total companies 1 companies in uptrend 2 companies in downtrend
FMCG - Foods 12 total companies 3 companies in uptrend 8 companies in downtrend
Home Financing 9 total companies 2 companies in uptrend 3 companies in downtrend
Equity 5 total companies 1 companies in uptrend 2 companies in downtrend
Telecom Equipments 5 total companies 1 companies in uptrend 4 companies in downtrend
Asset Management 11 total companies 2 companies in uptrend 5 companies in downtrend
IT Services & Consulting 28 total companies 5 companies in uptrend 12 companies in downtrend
Alcoholic Beverages 6 total companies 1 companies in uptrend 0 companies in downtrend
Software Services 12 total companies 2 companies in uptrend 2 companies in downtrend
Logistics 19 total companies 3 companies in uptrend 12 companies in downtrend
Textiles 24 total companies 3 companies in uptrend 12 companies in downtrend
Diversified Chemicals 9 total companies 1 companies in uptrend 2 companies in downtrend
Insurance 9 total companies 1 companies in uptrend 3 companies in downtrend
Hospitals & Diagnostic Centres 9 total companies 1 companies in uptrend 5 companies in downtrend
Investment Banking & Brokerage 9 total companies 1 companies in uptrend 5 companies in downtrend
Apparel & Accessories 18 total companies 2 companies in uptrend 9 companies in downtrend
Consumer Finance 20 total companies 2 companies in uptrend 3 companies in downtrend
Building Products - Pipes 10 total companies 1 companies in uptrend 7 companies in downtrend
Iron & Steel 31 total companies 3 companies in uptrend 19 companies in downtrend
Diversified Financials 13 total companies 1 companies in uptrend 5 companies in downtrend
Fertilizers & Agro Chemicals 26 total companies 2 companies in uptrend 12 companies in downtrend
Specialty Chemicals 28 total companies 2 companies in uptrend 14 companies in downtrend
Industrial Machinery 29 total companies 2 companies in uptrend 12 companies in downtrend
Auto Parts 54 total companies 3 companies in uptrend 32 companies in downtrend
Public Banks 21 total companies 1 companies in uptrend 6 companies in downtrend
Commodity Chemicals 26 total companies 1 companies in uptrend 15 companies in downtrend
Real Estate 37 total companies 1 companies in uptrend 27 companies in downtrend
Business Support Services 3 total companies 0 companies in uptrend 0 companies in downtrend
Mining - Copper 1 total companies 0 companies in uptrend 0 companies in downtrend
Animation 1 total companies 0 companies in uptrend 0 companies in downtrend
Metals - Diversified 1 total companies 0 companies in uptrend 0 companies in downtrend
Wellness Services 1 total companies 0 companies in uptrend 0 companies in downtrend
Metals - Lead 1 total companies 0 companies in uptrend 0 companies in downtrend
Mining - Coal 1 total companies 0 companies in uptrend 0 companies in downtrend
Soft Drinks 1 total companies 0 companies in uptrend 0 companies in downtrend
Commodities Trading 3 total companies 0 companies in uptrend 0 companies in downtrend
Technology Hardware 4 total companies 0 companies in uptrend 1 companies in downtrend
FMCG - Tobacco 3 total companies 0 companies in uptrend 1 companies in downtrend
Paints 3 total companies 0 companies in uptrend 1 companies in downtrend
Trucks & Buses 3 total companies 0 companies in uptrend 1 companies in downtrend
TV Channels & Broadcasters 5 total companies 0 companies in uptrend 1 companies in downtrend
Airlines 2 total companies 0 companies in uptrend 1 companies in downtrend
Mining - Iron Ore 1 total companies 0 companies in uptrend 1 companies in downtrend
Aerospace & Defense Equipments 2 total companies 0 companies in uptrend 1 companies in downtrend
Labs & Life Sciences Services 4 total companies 0 companies in uptrend 1 companies in downtrend
Tea & Coffee 5 total companies 0 companies in uptrend 1 companies in downtrend
Stock Exchanges & Ratings 6 total companies 0 companies in uptrend 1 companies in downtrend
Tractors 3 total companies 0 companies in uptrend 1 companies in downtrend
Cables 3 total companies 0 companies in uptrend 1 companies in downtrend
Retail - Online 2 total companies 0 companies in uptrend 1 companies in downtrend
Health Care Equipment & Supplies 2 total companies 0 companies in uptrend 1 companies in downtrend
Airports 1 total companies 0 companies in uptrend 1 companies in downtrend
Heavy Machinery 1 total companies 0 companies in uptrend 1 companies in downtrend
Education Services 4 total companies 0 companies in uptrend 1 companies in downtrend
Dredging 1 total companies 0 companies in uptrend 1 companies in downtrend
Building Products - Granite 1 total companies 0 companies in uptrend 1 companies in downtrend
Three Wheelers 1 total companies 0 companies in uptrend 1 companies in downtrend
Oil & Gas - Equipment & Services 2 total companies 0 companies in uptrend 1 companies in downtrend
Building Products - Prefab Structures 1 total companies 0 companies in uptrend 1 companies in downtrend
Metals - Coke 1 total companies 0 companies in uptrend 1 companies in downtrend
Home Furnishing 2 total companies 0 companies in uptrend 1 companies in downtrend
Metals - Coal 1 total companies 0 companies in uptrend 1 companies in downtrend
Theme Parks & Gaming 2 total companies 0 companies in uptrend 1 companies in downtrend
Theatres 2 total companies 0 companies in uptrend 1 companies in downtrend
Wood Products 3 total companies 0 companies in uptrend 1 companies in downtrend
Mining - Manganese 1 total companies 0 companies in uptrend 1 companies in downtrend
Cycles 1 total companies 0 companies in uptrend 1 companies in downtrend
Renewable Energy Equipment & Services 1 total companies 0 companies in uptrend 1 companies in downtrend
Radio 2 total companies 0 companies in uptrend 1 companies in downtrend
Housewares 1 total companies 0 companies in uptrend 1 companies in downtrend
Batteries 4 total companies 0 companies in uptrend 2 companies in downtrend
Power Transmission & Distribution 4 total companies 0 companies in uptrend 2 companies in downtrend
Outsourced services 5 total companies 0 companies in uptrend 2 companies in downtrend
Power Trading & Consultancy 3 total companies 0 companies in uptrend 2 companies in downtrend
Power Infrastructure 4 total companies 0 companies in uptrend 2 companies in downtrend
Ports 2 total companies 0 companies in uptrend 2 companies in downtrend
Biotechnology 3 total companies 0 companies in uptrend 2 companies in downtrend
Agricultural & Farm Machinery 2 total companies 0 companies in uptrend 2 companies in downtrend
Telecom Infrastructure 2 total companies 0 companies in uptrend 2 companies in downtrend
Gas Distribution 5 total companies 0 companies in uptrend 2 companies in downtrend
Metals - Aluminium 2 total companies 0 companies in uptrend 2 companies in downtrend
Building Products - Laminates 2 total companies 0 companies in uptrend 2 companies in downtrend
Tour & Travel Services 4 total companies 0 companies in uptrend 2 companies in downtrend
Water Management 2 total companies 0 companies in uptrend 2 companies in downtrend
Oil & Gas - Exploration & Production 3 total companies 0 companies in uptrend 2 companies in downtrend
Metal - Diversified 2 total companies 0 companies in uptrend 2 companies in downtrend
Cable & D2H 6 total companies 0 companies in uptrend 2 companies in downtrend
Shipbuilding 2 total companies 0 companies in uptrend 2 companies in downtrend
Conglomerates 6 total companies 0 companies in uptrend 3 companies in downtrend
Movies & TV Serials 6 total companies 0 companies in uptrend 3 companies in downtrend
Mining - Diversified 3 total companies 0 companies in uptrend 3 companies in downtrend
Electrical Components & Equipments 8 total companies 0 companies in uptrend 3 companies in downtrend
Telecom Services 6 total companies 0 companies in uptrend 3 companies in downtrend
Roads 5 total companies 0 companies in uptrend 3 companies in downtrend
Electronic Equipments 6 total companies 0 companies in uptrend 3 companies in downtrend
Agro Products 4 total companies 0 companies in uptrend 3 companies in downtrend
Oil & Gas - Storage & Transportation 4 total companies 0 companies in uptrend 3 companies in downtrend
Retail - Apparel 4 total companies 0 companies in uptrend 3 companies in downtrend
Tires & Rubber 7 total companies 0 companies in uptrend 3 companies in downtrend
Specialized Finance 7 total companies 0 companies in uptrend 4 companies in downtrend
Renewable Energy 5 total companies 0 companies in uptrend 4 companies in downtrend
Precious Metals Jewellery & Watches 7 total companies 0 companies in uptrend 4 companies in downtrend
Rail 4 total companies 0 companies in uptrend 4 companies in downtrend
Building Products - Ceramics 5 total companies 0 companies in uptrend 4 companies in downtrend
Sugar 8 total companies 0 companies in uptrend 4 companies in downtrend
Publishing 7 total companies 0 companies in uptrend 4 companies in downtrend
Hotels Resorts & Cruise Lines 11 total companies 0 companies in uptrend 4 companies in downtrend
Plastic Products 6 total companies 0 companies in uptrend 5 companies in downtrend
Gold 5 total companies 0 companies in uptrend 5 companies in downtrend
Packaged Foods & Meats 11 total companies 0 companies in uptrend 6 companies in downtrend
Power Generation 8 total companies 0 companies in uptrend 6 companies in downtrend
Packaging 8 total companies 0 companies in uptrend 7 companies in downtrend
Heavy Electrical Equipments 11 total companies 0 companies in uptrend 8 companies in downtrend
Paper Products 10 total companies 0 companies in uptrend 8 companies in downtrend
Home Electronics & Appliances 14 total companies 0 companies in uptrend 9 companies in downtrend
Cement 28 total companies 0 companies in uptrend 25 companies in downtrend
Construction & Engineering 41 total companies 0 companies in uptrend 29 companies in downtrend

Some of my observations:

  • IT, Pharma, Private Banks and FMCG (personal products) sectors have maximum companies in uptrend.
  • Packaging, Heavy Electrical Equipments, Paper Products, Home Electronics & Appliances, Cement, Construction & Engineering have maximum companies in downtrend.

I hope this information is useful in either picking a sector to invest or avoid, or in analysing a sector to find value.

9 Likes

Awesum article kudos to you for all your hardwork

@jagira It will be great if you can add the company names which are in uptrend in particular sector. Thanks!!

@coolfundoo The list is huge :neutral_face:

Here’s the analysis of Pharma sector -

Which sectors are you interested in? I will upload list for those sectors.

What is meant by trend here? Can you quantify in numbers? what metrics are you referring here to qualify as trend?

By trend I mean strong movement of price in a direction either up or down. I am using a combination of attributes like price, price change, volume and volume change on multiple timeframes, smoothen the curves and then apply first order derivatives (speed) and second order derivates (acceleration) to sort the list.

1 Like

@jagira what is the source of your images & how they are measuring trend reversal??

It’s from an app that I have built. Trend reversal is derived from change in price action.

Can you pls share the list for FMCG and textiles stocks list?

The list is Good and your intiative is very good however i couldn’t get the idea .What is the time frame to tracking the sectors . i am curious to konw what is the source of data an how you define a trend and what are the factors you are considering while making list .is it purely price movement ? or the overall growth or decline in the sector i am sharing one examplaory which is netPICK not mine :stuck_out_tongue_winking_eye:

@jagira
Thank you so much. It’s really good. I would like to know about few -
Alcoholic Beverages
Asset Management
Logistics
Diversified Chemicals
Hospitals & Diagnositics
Investment Bank & Brokerages
Home Finance
Equity
Insurance
Auto Parts