🏭 Markets — Industry Stages Tab

OUTPERFORMING · ACCUMULATING · CONSOLIDATING · UNDERPERFORMING · Composite Score 0–100 · 30-Day Sparkline

COMPLETE GUIDE PREMIUM

Following along? Open the live page

Finmagine — free to explore • premium for full access • no app needed

Open Finmagine →
← Markets Guide Open Industry Stages ↗
Published: May 27, 2026  |  6 min read  |  Platform Guide  |  Markets  |  Premium Feature

Multimedia Learning Hub

One tab that tells you which sub-industries are in full momentum, which are building bases, and which to avoid

What You Will Master

Industry Stages cuts through the noise of individual stock analysis by classifying every GICS sub-industry group into one of four market stages — OUTPERFORMING, ACCUMULATING, CONSOLIDATING, or UNDERPERFORMING. The classification is driven by a 0–100 composite score that blends RS Rating (relative strength vs the market), 1-month price return (recent momentum), and 52-week high proximity (how close group stocks are to their best prices). A 30-day sparkline shows whether each group's score is rising or falling.

What This Guide Covers:

  1. The composite score formula — three inputs, their weights, and why they were chosen
  2. The four stage thresholds — exact score cutoffs and what each stage means
  3. Reading the 30-day sparkline — rising vs falling within a stage
  4. Stage transitions — the most important signal (entering ACCUMULATING from CONSOLIDATING)
  5. Top-down workflow — where Industry Stages sits in the breadth→screener chain
  6. Common mistakes — chasing OUTPERFORMING without a sparkline check
What is the exact formula for the Industry Stages composite score?
Score = 0.40 × avg_RS_norm + 0.30 × avg_ret_1m_norm + 0.30 × avg_52wh_norm. All three inputs are individually normalised to a 0–100 scale before weighting. RS Rating (40% weight) is the dominant factor — it anchors the score to long-run relative performance. The 1-month return (30%) and 52WH proximity (30%) add short-term momentum and technical confirmation.
What are the four stage thresholds?
OUTPERFORMING: score ≥ 70 (gold badge). ACCUMULATING: score ≥ 50 and < 70 (green badge). CONSOLIDATING: score ≥ 30 and < 50 (blue badge). UNDERPERFORMING: score < 30 (red badge). These thresholds divide the 0–100 scale into four roughly equal zones, with the mid-band split at 50 separating constructive (50+) from weak (<50) groups.
What does the 30-day sparkline tell you that the stage badge doesn't?
The stage badge is a snapshot — it tells you where the group is right now. The sparkline shows the direction: is the score rising or falling? A group in ACCUMULATING with a rising sparkline is gaining momentum and may enter OUTPERFORMING soon. A group in OUTPERFORMING with a falling sparkline is losing strength — it may be peaking even though the badge is still gold. The sparkline is an early warning system within each stage.
Which stage transition is the highest-conviction buy signal?
A group transitioning from CONSOLIDATING to ACCUMULATING (score crosses 50 upward) with a clearly rising sparkline. This is the start of a new up-cycle — the group has built a base (CONSOLIDATING) and is now showing genuine momentum improvement. It hasn't yet reached OUTPERFORMING so you're entering early in the move rather than chasing an already-extended group.
Why does RS Rating have 40% weight vs 30% each for 1-month return and 52WH proximity?
RS Rating is computed over 12 months and normalised against all stocks in the universe — it captures sustained outperformance rather than a single-month spike. Short-term momentum (1-month) and technical proximity (52WH) can be driven by news or thin trading. By giving RS Rating the highest weight, the score anchors to genuine long-run relative strength while still incorporating the shorter-term signals for timely detection of stage changes.
Can a group be in OUTPERFORMING but still be a bad trade setup?
Yes — two warning signs within OUTPERFORMING: (1) a falling sparkline (score declining even though still above 70) signals a topping group where momentum is eroding; (2) the group has been OUTPERFORMING for many months with stocks extended far above moving averages — late-stage momentum where risk/reward is poor. The gold badge reflects the current score, not forward momentum. Always check the sparkline and whether individual stocks in the group are extended before initiating new positions.

1. The Composite Score (0–100)

Every GICS sub-industry group on the Industry Stages tab receives a score computed daily from three normalised inputs:

Score = 0.40 × avg_RS_norm + 0.30 × avg_ret_1m_norm + 0.30 × avg_52wh_norm
Input Weight What It Measures Why It Matters
avg_RS_norm 40% Average IBD-style RS Rating (1–99 percentile) of member stocks, normalised 0–100 12-month relative strength vs market — the dominant long-run factor
avg_ret_1m_norm 30% Average 1-month price return across member stocks, normalised 0–100 across all groups Recent price momentum — catches emerging moves the 12-month RS hasn't priced yet
avg_52wh_norm 30% Average proximity to 52-week high (% below high) across member stocks, normalised 0–100 Technical strength — groups near highs show supply has been absorbed; groups far from highs still have overhead resistance
Why these three inputs?

Together they form a complete momentum picture: RS Rating ensures the group's relative outperformance is sustained over 12 months (not a news spike). 1-month return confirms the group is currently in motion (recent buying pressure). 52WH proximity confirms the group is technically healthy and not burdened by overhead resistance from prior sellers. A group that scores high on all three has broad, sustained, technically healthy momentum — the best conditions for finding breakout stocks within it.

2. The Four Stages

The composite score maps to one of four stages. Each stage is shown as a colour-coded badge next to the industry group name.

Industry Group Score Stage 30D Trend Stocks
Defence & Aerospace
76
 OUTPERFORMING 📈 19
Private Banks
58
 ACCUMULATING 📈 9
IT — Large Cap
44
 CONSOLIDATING ➡️ 25
PSU Banks
21
 UNDERPERFORMING 📉 12
Illustrative data · Score bars proportional to value · Updated daily after market close

OUTPERFORMING — Score ≥ 70

Maximum momentum. The majority of member stocks have high RS Ratings, strong recent returns, and are trading close to their 52-week highs. This is the group where the market's best current ideas live. Focus your breakout stock hunting here — the tape is confirming the fundamental thesis for any stock you buy within this group.

ACCUMULATING — Score ≥ 50

Early momentum building. Stocks in this group are showing constructive price action — forming bases, beginning early breakouts, with RS Ratings that have been rising over recent weeks. This stage often precedes OUTPERFORMING and is where the best risk/reward opportunities exist for medium-term investors who want to enter before a group is widely recognised as a leader.

Best entry opportunity: An ACCUMULATING group with a steeply rising 30-day sparkline (heading toward 70) is the highest-conviction setup on the page. You're entering before the group is labeled OUTPERFORMING, with plenty of room for the score to rise further.

CONSOLIDATING — Score ≥ 30

Sideways or base-building phase. Stocks in this group have neither meaningful upside nor downside momentum. They're "digesting" prior moves — neither attracting buying nor experiencing selling. This is the neutral zone: not an area to hunt aggressively unless you see early sparkline improvement that signals the group may be rotating into ACCUMULATING.

UNDERPERFORMING — Score < 30

Deteriorating trends. Member stocks have low RS Ratings, recent negative returns, and are far below their 52-week highs. Avoid new positions. If you hold stocks in UNDERPERFORMING groups, treat this as a systematic risk flag — review your holding thesis. The only exception is a clearly identified contra-trend or deep-value recovery setup with a specific catalyst.

Avoid catching falling knives: A rising sparkline in UNDERPERFORMING does not mean the group is recovering — it may be a brief bounce within a downtrend. Wait for the score to cross 30 (enter CONSOLIDATING) before treating it as a potential watch candidate.

3. The 30-Day Sparkline

Next to each stage badge, a miniature sparkline shows how the group's composite score has moved over the past 30 trading days. This single visual turns a static classification into a dynamic momentum signal.

Sparkline Pattern Stage Interpretation Action
Strongly rising ACCUMULATING Score climbing toward 70. Momentum building. Early-stage move. High conviction — start researching stocks in this group
Flat / sideways OUTPERFORMING Group is leading but no longer accelerating. Score stable in the 70–80 zone. Hold existing; tighter stop-losses for new entries
Declining OUTPERFORMING Early topping signal. Still gold badge but losing steam. Score heading toward 70. Warning — review open positions, reduce new exposure
Rising from bottom CONSOLIDATING Score crossing upward from the low 30s toward 40–45. Watch for ACCUMULATING transition. Add to watchlist — wait for score > 50 to confirm transition
Steeply declining UNDERPERFORMING Score falling further below 30. Trend is accelerating down. Avoid — do not bottom-fish, no sparkline reversal yet

4. Top-Down Workflow

Industry Stages is the third step in the Finmagine top-down chain. It bridges the gap between broad market breadth and individual stock discovery.

The complete top-down chain:

1. Breadth tab → confirm overall market health (% stocks above 50DMA, new highs vs lows)
2. Trending Sectors → identify the leading broad sectors (% stocks with positive 1Y return)
3. Industry Groups → drill into the rising sub-industry within the leading sector (4W Δ rank)
4. Industry Stages → classify each sub-industry: are stocks in that group in OUTPERFORMING or ACCUMULATING?
5. Screener → filter quality stocks within the OUTPERFORMING / ACCUMULATING group
6. Stock page → validate fundamentals, catalyst, and entry before buying

A worked example

Step 1 (Breadth): 68% of stocks are above their 50DMA — healthy market, proceed with longs.

Step 2 (Trending Sectors): Capital Goods sector shows 74% trending — one of the top 3 sectors.

Step 3 (Industry Groups): Within Capital Goods, "Defence & Aerospace" is at rank 1 with ↑+5 (4W Δ). "Power Equipment" is at rank 6 with ↑+3. Both rising. "Construction Equipment" at rank 12 with ↓−2 — avoid.

Step 4 (Industry Stages): Defence & Aerospace has score 76 — OUTPERFORMING with a flat sparkline (established leader). Power Equipment has score 58 — ACCUMULATING with a steeply rising sparkline (early-stage, better risk/reward).

Step 5 (Screener): Filter Power Equipment sub-industry with ROCE > 15%, Debt/Equity < 0.5, RS Rating > 70. This generates a short list of 4–6 quality companies within a rising ACCUMULATING group.

OUTPERFORMING vs ACCUMULATING — which to prefer?

For breakout momentum traders: OUTPERFORMING groups with flat/rising sparklines — stocks in these groups are already in confirmed up-trends.
For early-rotation investors: ACCUMULATING groups with steeply rising sparklines — more upside potential, earlier in the move, but requires more patience before the move is confirmed.

Ready to Analyse Indian Stocks Like a Pro?

Finmagine gives you 30+ computed financial ratios, sector benchmarks, FII/DII flows, the Finmagine Score, and AI-powered analysis — all in one place.

Analyse a Stock → Create Free Account
← Markets Guide
↑