Sector/ Industry Analysis

#1
Hi,
I was wondering if anyone has any idea about a good source of sector analysis before investing into a particular stock. I want to know which sectors expect the highest growth rate in the coming 1 year and the coming 5 years as well.

Thanks.
 

AW10

Well-Known Member
#3
Suggest following 3 options for this. First 2 are easy to get, whereas the 3rd one is for
people who want to do it on their own.
1) Track mutual funds and see the sector in which they are overweight now
2) Track the media / cnbc and check out on what sectors are mentioned by so called experts.
3) There is a technical indicators called "Comparative Relative Strength " for this purpose. Basically this indicator takes the price of one security and devides it by the benchmark index and plots it over a period of time. For sector analysis, one can take sector index and plot this indicator by taking SENSEX / NIFTY as benchmark.
Various other Technical anysis tools (like trend following, moving average, RSI etc are used on this indicator to find out if it is outperforming the benchmark or not.


Happy trading.
 

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