These three sectors may sparkle if markets revive sooner-than-expected

While the Nifty Auto and FMCG indices are expected to rise 4%, the Nifty Health Care index may emerge as the dark horse

Benchmark indices -- S&P BSE Sensex and Nifty50 -- have rebounded over 5 per cent after hitting fresh 52-week lows on June 17, 2022. Rapidly falling commodity prices, expectations that inflation might have peaked, and robust outlook for domestic economy have helped markets recoup losses. Besides, average selling by foreign portfolio investors (FPIs) has moderated considerably, boosting sentiment. 

The BSE Sensex has reclaimed 54,000-mark, while the Nifty50 has crossed 16,000 level. Such a decisive win over their sentimental marks could see further upside if there are no negative surprises. 

Thus, if the Indian markets continue to rise from here, these sectors look ripe to outperform the benchmark indices:

NIFTY HEALTHCARE 

Likely target: 8,100 and 8,400

Upside potential: 5% to 9%

The Nifty Health Care index, which was launched in November 2020, has plunged 21 per cent from its all-time high. The index exhibits a reversal trend with the formation of "Inverse Head and Shoulder". If this pattern materialises, the probability of short-to-medium term upside cannot be ruled out. Going forward, as long as the support of 7,400 is protected, the index could rally to 8,100 and 8,400 levels, its next imminent hurdles, shows the daily chart. CLICK HERE FOR THE CHART

NIFTY AUTO

Likely target: 12,700

Upside potential: 4.50%

The index shows extreme optimism, and is just couple of points away from claiming a new all-time high. Once achieved, the index may see a breakout towards 12,700. The current peak stands at 12,139 levels. The index is rallying with "Higher High, Higher Low" formation, and as long as 11,600 is defended, the upward momentum will continue, shows the daily chart. CLICK HERE FOR THE CHART

NIFTY FMCG

Likely target: 42,500

Upside potential:  4%

The FMCG index has demonstrated a sharp reversal after its slaughtering towards 52-weeks low of 33,407 in March 2022. The index is now up 23 per cent since then, and has claimed 41,000-mark decisively. The broader formation reveals a medium-term breakout above Rs 39,500 and the index can pull a new historic peak of 42.500 levels. CLICK HERE FOR THE CHART