Methodology

What the map shows

Each dot is an NSE sector index measured against a benchmark (Nifty 50 by default). Position is two numbers:

• RS-Ratio (horizontal) — is the sector's recent relative-strength trend above its long-run trend?
• RS-Momentum (vertical) — is that relative strength still accelerating?

Both are centered on 100. The four quadrants, read clockwise: Leading (strong & rising), Weakening (strong but slowing), Lagging (weak & falling), Improving (weak but turning up).

The formula

RS_t          = 100 × close_sector_t / close_bench_t
RS-Ratio_t    = 100 × WMA(RS, FAST)_t / WMA(RS, SLOW)_t
RS-Momentum_t = 100 × RS-Ratio_t / RS-Ratio_(t−MOM)

WMA is a linearly-weighted moving average (recent days count most). This is our own variant — not the licensed JdK formulation. We calibrated it against an established rotation tool across ~460 sector-date observations spanning two market regimes: it agrees on the quadrant ~91% of the time, and every remaining difference is a dot sitting essentially on a boundary line, where no two tools agree.

Data & schedule

EOD index and equity values come from NSE's public daily files via the TRADL data platform. The map recomputes every trading evening after the official close. Newer indices with short history (e.g. Nifty India Defence) render a shorter tail until enough sessions accumulate.

The "why" cards

Every explanation is grounded: each bullet must cite a real event from our event database, and every number and ticker is checked against those cited events before publish. If there's no plausible catalyst, the card says so — we never invent a narrative. Cards are descriptive only; nothing here is investment advice.

Market regime — the forces behind the map

Step back from individual sectors and the map is driven by a few recurring forces — groups of sectors that move together, and against each other. We surface three, each a see-saw between two camps:

• Industrial / PSU theme — the gov't / industrial / commodity pack (energy, PSE, infra, oil & gas, defence, metal, PSU banks) versus the private large-cap giants.
• Banks vs defensives — banks & financials versus the safe, steady sectors (IT, pharma, healthcare, FMCG).
• Domestic vs global — the home economy versus globally-priced sectors (IT, oil & gas, energy).

Each force's score is the average rotation position (RS-Ratio) of one camp minus the other; positive means that camp is collectively leading the Nifty. We found these by a principal-component analysis of five years of sector relative-returns: they are the components that both carry a clear economic meaning and re-appear consistently across every year tested. The groupings are then fixed — we recompute the daily scores, not the groups.

Like the map itself, this is descriptive and contemporaneous: it tells you which way the market is leaning today, not what happens next.

Known divergence

Because our variant differs from licensed tools, some quadrant placements will differ — that's expected and documented, not a bug. Our calibration target is broad agreement on direction, not identical dots.

Alerts

Quadrant-crossing alerts are confirmed with hysteresis (a move must clear the boundary decisively or hold for two sessions) so you only hear about real transitions — a few a week at most. Email signup lands with the alerts release.

Rotation Lens is a descriptive analytics tool for educational purposes — not financial advice. "RRG" and "Relative Rotation Graph" are registered trademarks of RRG Research; Rotation Lens is an independent sector rotation map and is not affiliated with RRG Research.