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
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.
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.
1. GRM Overseas Ltd
When you think of basmati rice, think of GRM Overseas —a seasoned player in the food exports business that’s slowly expanding its retail presence across India. GRM Overseas Ltd started as a rice exporter but has recently diversified into domestic FMCG. With a strong brand presence and rising retail push, it aims to be more than just a rice exporter—it wants to be a household name.
The stock has come alive on the weekly chart—registering its strongest bullish candle with the highest weekly volumes since September 2024. That’s a major volume spike; in technical terms, it often signals smart money entering the trade. According to Volume Spread Analysis (VSA), this candle, paired with high volume, indicates the birth of a fresh, bullish trend. In addition, the stock is
breaking through its previous resistance zone, and we could be looking at a potential upside move.
Don’t Just Watch the Market—Savor It
The food sector [RG1] may not always be in the limelight, but it’s proving to be a quiet performer amidst market chaos. With technical patterns aligning, volume picking up, and RSI signalling strength, Bector Foods and GRM Overseas Ltd are two flavorful picks that could add some real spice to your portfolio.
Note: We have relied on data from throughout this article. Only in cases where the data was unavailable have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Brijesh Bhatia has over 18 years of experience in India’s financial markets as a trader and technical analyst. He has worked with UTI, Asit C Mehta, and Edelweiss Securities. Presently, he is an analyst at Definedge.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article. However, clients of Definedge may or may not own these securities.
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