Using Ratio Analysis to Find Outperforming Sectors 📈

By using a simple strategy, we identified a few sectors that can outperform NIFTY50 in the near to medium term :chart_with_upwards_trend:

:arrow_right: Ratio analysis involves comparing 2 instruments to identify their relative performance.

:arrow_right: For this, we divide the numerator by the denominator to arrive at a ratio. If the line of a ratio chart is rising, the numerator is outperforming the denominator and vice versa.

:arrow_right: Using this technique, one can see that though BANKNIFTY has given positive returns in the past year, it has underperformed when compared to NIFTY50.

So we identified a few sectors doing the opposite, i.e. likely to outperform NIFTY50.

Checkout the latest issue of Upsurge’s Newsletter to know which 3 sectors we identified :eyes:

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2 Likes

Hi, was going through this analysis and found out that few indices couldn’t be added to Dhan watchlist, could anyone from the product team check on the same. Attaching screenshot.

Hi @tusharj You can search for Nifty / Nifty 50