Sector Rotation Strategy: Using RRG for Indian Markets
How to read the RRG (Relative Rotation Graph) for NSE sectors. Leading, improving, lagging and weakening quadrants explained.
What is the Relative Rotation Graph (RRG)?
The RRG plots sectors (or sub-sectors) on two axes: RS-Ratio (relative strength vs market) and RS-Momentum (short-term relative change). Sectors move through four quadrants: Leading (outperforming + gaining), Improving (underperforming but turning up), Lagging (weak and falling), and Weakening (still outperforming but losing steam).
Sector rotation in Indian markets follows a typical clockwise path: Improving → Leading → Weakening → Lagging. By focusing stock screening on Leading and Improving sectors, you improve the odds of finding the best stocks to buy in India.
Using RRG for Stock Selection
Our RRG screener supports multiple timeframes (1W vs 3M, 1M vs 6M, 3M vs 1Y) and both sector and sub-sector views. Use it to see which sectors are hot, then run momentum or fundamental screeners within those sectors. Combine with our sector returns table for detailed 1W/1M/3M/6M/1Y performance.