My Best Sectors for 2022

Happy New Year to all our viewers. Welcome to the Fast Profits Daily. Myself Brijesh Bhatia.

Well, if you remember, we did a video last week on hits and misses of 2021 on various sectors which I have discussed in the last year. Approx. it was around 18 videos, sectoral videos, I have done in the last year and in case you have missed that video, go to our archives and check that video.

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

The best video last year was the best sector for 2021 which I indicated was metals and it was of up above 90% at one point of time and in the end it ended around 70% higher in the last year. If you look at 2021, it was an amazing year as Nifty gained around 24%, it was largely led by IT and the metals which were leading the sectorial indices.

Now, as you have seen, the title is the best sector for 2022. Well in this video, I'm discussing two sectors where I think 2022 can be fruitful to these two sectors. The first is realty and second is infra.

So let's look at the charts as to why I am bullish on the realty and infra. So first let's look at the realty sector over here.

 

Now if you look at the reality sector, this chart I've discussed in previous videos as well, it has taken 148 weeks, nearly a decade of range before breaking out of a consolidation.

So a decade of consolidation and if you remember, in 2007 we have seen the mortgage bubble, in 2007-2008 in the US, and since then, real estate prices have been stagnant.

If I just look at the chart over here as per the Wykoff theory, it has just entered into the phase D. The break out has happened. We might see a retest, a dip and every dip into the realty space, I think is a huge opportunity to look for one year perspective on investments.

So realty is the one where I think could be a huge outperformer in 2022 and this is the monthly chart. So look at the consolidation, 10 years of consolidation and then a breakout which is very, very crucial and not once or twice, but for last 3-4 months we are witnessing on month on month basis, the prices are closing about the range breakout, which is a sign of strength or convincing that it has been holding on to that period.

Even if you look at the previous breakout which happened in 2017-18, only once it closed higher and then it came back down. This time for a quarter it has been holding on to these closes. So I believe realty is very, very much strong.

 

Second is the infra. Now again 148 months of consolidation and now prices trading about those and again, this is again a monthly chart over here.

Now as I said a monthly closing above the breakout is a very, very strong sign of the bullish strength. We are witnessing a month on month closing above the breakout.

Plus look at the RSI on the lower panel. Since 2013-14, this is the first time it has crossed the higher levels. Again, 8-9 years of consolidation and breakout on RSI indicates the strength of the trend is very, very strong.

So I believe these two sectors should be buying on dips every time. If you see the markets are consolidating on the lower side, try to grab these two sectors. I believe 2022 again, it might see a huge upside in next one year or probably by end of 2022, I'm expecting this sector to be a strong outperformer among sectoral indices.

So signing off, Brijesh Bhatia.