Markets are sizzling again. Despite the rollercoaster ride driven by the global tariff war headlines, some sectors are quietly cooking up a comeback. Among them? The humble-yet-hearty food sector. While the NSE and BSE haven’t officially plated up a “Food Sector” index, we have taken the liberty—like a good chef experimenting in the kitchen—to whip up our own – the Definedge Equal Weighted Food Index, composed of 25 food-centric small and midcap stocks.
And guess what? The technical flavours look absolutely mouth watering.
For those who like side dishes like chart patterns with their investment picks, here is a quick technical appetiser:
Definedge EQW Food Index
Source: Zone, Definedge Securities
On the Daily 0.25% X 3 Point & Figure chart, a rare five-column breakout has emerged. This isn’t your average breakout—this one signals a powerful move out of a consolidation phase, a bit like a soufflé that finally rises.
Before this, we saw a classic bullish anchor column followed by a period of digestion (pun intended). With the breakout from a triangle formation and higher lows stacking up like pancakes, the long-term trend appears decidedly bullish.
Now, let us dig into the main course – two small-cap stocks showing some serious upside potential.
Bector Foods
If you are a fan of bakery treats and sauces, Bector Foods might already be on your kitchen shelf. But it may be time to put it on your investment watchlist shelf, too.Bector Foods is a household name in India’s bakery and biscuit space, with brands like Cremica and English Oven. It caters to the retail space and supplies buns and sauces to some of the biggest QSR (Quick Service Restaurant) chains. Think of it as the invisible hand behind your favourite burger.
Source: TradePoint, Definedge Securities
On the Daily 0.25% X 3 Point & Figure chart, Bector corrected nearly 40% from its peak—but wait, there’s more. It retested its previous breakout zone, a key sign that the bulls are back in action. The recent four-column triangle breakout suggests a possible continuation toward previous highs.Topping it off? The RSI has risen above 50, coming out of oversold territory. That’s the technical equivalent of a cake that’s finally set—signalling strength and structure in the potential bullish trend.
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