Measuring the relative performance is essential for setting the right priorities for the Investing. Relative performance, expressed in percentile rankings and explains how well a sector is performing in comparison with other sectors.
Bank Nifty, CNX Finance, CNX Auto are the sectors are in underperforming mood with Bank Nifty and CNX Finance with a descent momentum. And the recent deep underperforming sectors like CNX IT, CNX Pharma and CNX Reality can have a possible sector rotation in shorter term and in the process gaining momentum and could take some time to get out of underperforming Nifty.
Relative Rotation Graph (RRG) is a proprietery visualization tool to study and analyze trend in stocks/index with respect to the benchmark index. RRG is developed by Julius de Kempenaer (RRG Research) during 2004-2005. Currently the study is available in Stockcharts, Bloomberg (Since 2011) and Market Analyst 7. RRG generally favors investors to invest in strong sectors with good amount of momentum, Cycle Analysis in Stocks with respect to bench mark index.