This relative study is done using RRG Graph from Market Analyst 7. Here RRG Graph is used to study the movements of Sectors relative to CNX Nifty Index to identify under-performing and outperforming sectors (shorter term) relative to the index.
Bank Nifty shows a considerable strength in the current fall of CNX Nifty. Compared to other sectors the relative strength in Bank Nifty is far better. However most of the sectors shows a falling momentum and the relative strength in pharma sector , reality sector and CNX Smallcap is relatively weaker with a strong momentum which signifies highly underperforming sectors.
Overall the weaker picture in the sector strength suggests more fall to come in shorter term. Playing a mean reversion game might not be a favorable option.
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