Today's Chart of the Day was shared on Twitter by Nipun Madan, CFA ( @NIPUNN). It's a daily RRG Chart (Relative Rotation Graph®) of Nifty Sectoral Indices. RRG Chart is used to analyze several securities' relative strength trends against a standard benchmark(NIFTY 50 Index) to separate market leaders from the market laggards.
Nipun points out the continuous outperformance of Pharma and Metal compared to other sectoral indices. Further Nifty PSU Bank is in an improving quadrant compared to Nifty Bank, which lags the benchmark. On an absolute basis, both PSU bank and Nifty bank index are weak, but RRG shows more relative weakness in Nifty bank.
|