🔄 Sector Relative Rotation Graph

What the Sector RRG Shows

The Relative Rotation Graph is a single chart that shows 18 NSE sector indices simultaneously, each plotted by two values: how much the sector is outperforming or underperforming Nifty 50 (x-axis), and whether that outperformance is growing or shrinking (y-axis). Every sector leaves a short trail of dots showing its movement over the past 5 sessions.

The insight that makes this useful: sectors rarely jump between states. They rotate — gradually gaining momentum, peaking, slowing, weakening, and then recovering. Watching where each sector sits on the chart and which direction its trail is pointing gives you a fast picture of where in that cycle each sector is today.

The Two Axes

X-axis: RS-Ratio (Relative Strength)

The x-axis measures whether a sector is outperforming or underperforming Nifty 50. The axis is always centred at 100:

• RS-Ratio > 100 — the sector is beating Nifty 50 on a relative basis
• RS-Ratio < 100 — the sector is lagging Nifty 50
• RS-Ratio = 100 — the sector is moving exactly in line with Nifty 50

The further right a sector is, the stronger its relative performance. The further left, the weaker.

Y-axis: RS-Momentum (Rate of Change)

The y-axis measures whether the sector's relative strength is accelerating or decelerating. It is also anchored at 100:

• RS-Momentum > 100 — relative strength is increasing; the sector is gaining ground vs Nifty 50
• RS-Momentum < 100 — relative strength is decreasing; the sector is losing ground vs Nifty 50

A sector can be above 100 on the x-axis (outperforming) but below 100 on the y-axis (losing that edge). That sector is in the Weakening quadrant — it is still strong, but the peak is behind it.

The Four Quadrants

Clockwise Rotation

Sectors typically move clockwise through the quadrants: Leading → Weakening → Lagging → Improving → back to Leading. This is not a rigid rule — some sectors reverse, stall, or skip a quadrant — but the clockwise tendency is strong enough to be a useful prior.

Reading the Trail

Each sector is represented by a series of dots connected by a line — the trail. The last dot is the current position; the earlier dots show where the sector was over the previous 5 trading sessions. The direction the trail is pointing tells you as much as the current quadrant.

• Trail pointing right and up — both RS-Ratio and RS-Momentum are rising. The sector is strengthening fast. This is the most bullish pattern even if the sector is still in Improving.
• Trail pointing right but down — RS-Ratio rising but Momentum falling. The sector entered Leading but is now losing pace — watch for rotation into Weakening.
• Trail pointing left and down — both axes falling. The sector is deteriorating. Even if it is in Weakening, the trail direction shows it is heading toward Lagging.
• Trail pointing left but up — RS-Ratio still falling but Momentum is turning. This is the earliest sign of a sector bottoming — it is still in Lagging but the trend is reversing.

The Controls

As-Of Buttons

The row of buttons at the top of the chart controls which date's snapshot you are viewing:

• Now — the latest available snapshot (updated nightly after market close)
• 1M ago / 2M ago / 3M ago — the RRG as it appeared approximately 30, 60, or 90 trading days ago

Comparing "Now" to "1M ago" is the fastest way to see which sectors have rotated between quadrants over the past month. If a sector was in Lagging a month ago and is now in Improving, that is an emerging rotation worth investigating further via the Markets Industry Groups tab or the Screener.

Animate (Premium)

The Animate button plays a time-lapse of sector rotation across the trail period — each frame advances one trading session. This makes rotation patterns visible as motion rather than static dots, which is particularly useful for identifying sectors mid-rotation. Animate is a Premium feature; free and guest users can see the static chart and the as-of snapshots.

The Sector Positions Table

Below the chart is a table listing all 18 sectors with their current RS-Ratio, RS-Momentum, and quadrant badge. The table is sorted by quadrant — Leading sectors first, then Weakening, Improving, and Lagging — making it easy to scan quickly without reading every dot on the chart.

The table is particularly useful when sectors are clustered close to the 100/100 centre on the chart (a common occurrence during low-dispersion markets). Small differences in RS-Ratio and RS-Momentum that are hard to read visually on the chart become clear numeric comparisons in the table.

How the Values Are Computed

Finmagine computes RS-Ratio and RS-Momentum nightly from daily close prices stored in the platform's database. The algorithm runs in two passes to ensure all 18 sectors are comparable on the same scale:

Pass 1 — Per Sector

1. Raw RS line — sector close ÷ Nifty 50 close each day. This gives the sector's price relative to the benchmark as a ratio.
2. Smooth with EMA-10 — a 10-day exponential moving average of the raw RS reduces session-to-session noise.
3. Self-normalise to 100 — each sector's smoothed RS is divided by its own 13-day moving average and re-scaled to 100. This step removes the absolute level difference between sector indices: Nifty Midcap 100 trades near 50,000 while Nifty Realty trades near 500 — without normalisation, these levels would make cross-sector comparison meaningless.

Pass 2 — Cross-Sectional

1. Cross-sectional centring — on each date, each sector's normalised value is divided by the average of all 18 sectors on that date. This keeps the whole chart centred at 100 regardless of whether the market is in a regime where Nifty 50 is outpacing all sectors simultaneously.
2. RS-Momentum — the cross-centred RS-Ratio is then divided by its own 10-day moving average, again scaled to 100. Values above 100 mean RS-Ratio is rising; below 100 means it is falling.

Data is computed nightly and stored in the platform database. The page shows data as of the last trading day's close.

Applying Sector Rotation to Stock Selection

The RRG is a top-down filter, not a buy signal. Use it to calibrate your conviction before you start stock-level analysis:

• Leading sectors — highest tailwind. Stocks in these sectors that are also technically set up are the highest-probability new entries. The sector is doing the heavy lifting.
• Improving sectors — early-mover opportunity. If the sector trail is pointing sharply right (toward Leading), stocks in this sector may be bottoming before the broader market notices the rotation. Higher risk, but also higher potential return if the rotation is real.
• Weakening sectors — hold existing positions cautiously. Avoid adding fresh capital. The sector was strong but is losing edge — stocks in this sector are likely to lag peers in Leading sectors.
• Lagging sectors — require a specific catalyst to justify new positions. Avoid buying just because something has fallen — a sector deep in Lagging with a southward trail may stay there for months.

Connecting RRG to the Rest of the Platform

The RRG is most powerful when used as the first step of a top-down workflow:

1. Identify leading or early-improving sectors on the RRG
2. Drill into sub-sectors via the Markets Industry Groups tab — the 52WH Dist and 4W/12W rank history show which sub-sector within your chosen sector is actually rotating
3. Use the Screener to filter for stocks in that sub-sector that meet your technical and fundamental criteria
4. Open individual stock pages for full fundamental and concall context

Related Guides

• Markets Hub — the 12-tab Markets surface: breadth, heatmap, FII/DII, industry groups, industry stages, and more
• Industry Groups — sub-sector rankings with 52WH Distance, 4W & 12W rank history for drilling from sector to sub-sector
• Sector Heatmap — visual heat grid of all sectors by 1-day, 1-week, and 1-month performance
• Morning Brief — pre-session briefing desk with sector movers, FII/DII flows, and AI prompt synthesis