Live NSE Sector Rotation: Spot the Next Big Market Move
The stock market doesn't move in a straight line, and neither does smart money. Institutional capital constantly rotates from one sector to another—booking profits in overvalued industries and buying quietly into undervalued ones.
If you can track where the money is flowing before the breakout happens, you gain a massive edge.
Welcome to the Weekly Relative Rotation Graph (RRG) for the National Stock Exchange (NSE). Updated automatically every week, this interactive quantitative tool visualizes the relative strength and momentum of major Nifty sectors compared to the broader Nifty 50 index.
How to Read the Chart
The RRG is broken down into four distinct quadrants. The chart plots the JdK RS-Ratio (relative trend) on the horizontal axis and JdK RS-Momentum (rate of change) on the vertical axis. Here is what each quadrant tells you about a sector's current health:
- 🟢 LEADING (Top Right): The sweet spot. Sectors here are outperforming the Nifty 50 with strong upward momentum. Action: Look for breakout stocks within these sectors to ride the trend.
- 🟡 WEAKENING (Bottom Right): The warning zone. These sectors are still in a long-term uptrend relative to the Nifty, but they are losing momentum. Action: Tighten stop-losses and prepare to book profits.
- 🔴 LAGGING (Bottom Left): The dead zone. Sectors here are underperforming the index and have negative momentum. Action: Avoid allocating new capital here until the trend shifts.
- 🔵 IMPROVING (Top Left): The opportunity zone. These sectors are still historically weak, but their momentum is sharply reversing upward. Action: Start building watchlists. This is where smart money accumulates shares before the sector crosses into the Leading quadrant.
The Standard Rotation Strategy
A healthy sector will usually complete a full clockwise rotation through the graph: Improving ➔ Leading ➔ Weakening ➔ Lagging.
To use this data effectively, quantitative traders look for the "Improving to Leading" crossover. When a sector line confidently hooks upward and crosses from the Blue quadrant into the Green quadrant, it often signals the start of a multi-week or multi-month outperformance cycle.
💡 Hover over the lines on the chart above to see the historical 5-week path of each sector to gauge its current trajectory!
Disclaimer: The data and charts provided on this page are for educational and informational purposes only and do not constitute financial advice. Always perform your own due diligence or consult a SEBI-registered advisor before making investment decisions.