Can we find stock which is leading rally in any sector?
Answer is Yes.
Relative Strength (#RS) indicator gives a good signal of stock, which can outperform and lead the rally.
Let's see an example.
Answer is Yes.
Relative Strength (#RS) indicator gives a good signal of stock, which can outperform and lead the rally.
Let's see an example.
This chart is of ICICI bank.
Indicator used is Relative Strength with respect to Nifty Bank (Banking sector index).
If RS is above 0, that means stock can outperform.
As seen from the chart, ICICI Bank gave returns of 30% in less than 1 year.
Indicator used is Relative Strength with respect to Nifty Bank (Banking sector index).
If RS is above 0, that means stock can outperform.
As seen from the chart, ICICI Bank gave returns of 30% in less than 1 year.
Second chart is of HDFC Bank.
RS is below 0, which means stock can underperform.
As seen from the chart, HDFC Bank gave returns of 7%.
During the same period, BankNifty gave 22% returns.
Using this strategy, one can easily find out outperformers in that sector.
RS is below 0, which means stock can underperform.
As seen from the chart, HDFC Bank gave returns of 7%.
During the same period, BankNifty gave 22% returns.
Using this strategy, one can easily find out outperformers in that sector.
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