Strategy Guide

How to Use the RRG Sector Rotation Screener on NSE for Leading Sectors

Master the RRG sector rotation screener on NSE to spot leading sectors before they peak. This guide covers key indicators, thresholds, and a practical entry checklist for Indian traders.

Strategy Guide — Evergreen guide for NSE traders. For educational purposes only, not financial advice.

The RRG sector rotation NSE screener helps traders identify which sectors are gaining or losing momentum relative to the broader market. By plotting sectors on a relative strength vs. momentum grid, you can quickly spot leaders, laggards, and turning points for tactical allocation.

4
Quadrants (Leading, Weakening, Lagging, Improving)
14
NSE Sector Indices Tracked
20
Period RS-Ratio & RS-Momentum (default)
100
Baseline (index = 100)

Why RRG Sector Rotation Matters for NSE Traders

Sector rotation is a cornerstone of institutional portfolio management, and the RRG (Relative Rotation Graph) makes it visual and actionable. By using the RRG sector rotation screener, you can see which sectors are entering the 'Leading' quadrant (high relative strength and rising momentum) and avoid those in 'Lagging' (low relative strength and falling momentum).

For example, in July 2026, Nifty Bank and IT may show strong upward RS-Ratio while Pharma might be weakening. This allows you to rotate capital into the strongest groups before the broader market catches on. The screener updates daily with NSE closing data, giving you a fresh view of sector leadership.

📌 Key Insight
The Leading quadrant is where you want to be: sectors here have both high relative strength (RS-Ratio > 100) and rising momentum (RS-Momentum > 100). These are the sectors most likely to outperform in the near term.

How to Use the RRG Sector Rotation Screener (Step-by-Step)

1
Open the RRG Screener — Navigate to the RRG sector rotation screener on QUANTSCASE. The default view shows all major NSE sector indices plotted on the RRG.
2
Identify the Leading Quadrant — Look at the top-right quadrant (Leading). Sectors here have RS-Ratio > 100 and RS-Momentum > 100. These are your top candidates for long positions.
3
Check the Improving Quadrant — The bottom-right quadrant (Improving) shows sectors with RS-Ratio < 100 but RS-Momentum > 100. These sectors are gaining momentum and may soon enter the Leading quadrant.
4
Avoid the Lagging Quadrant — Sectors in the bottom-left (Lagging) have both metrics below 100. Avoid these for long trades. They may be in a downtrend relative to the market.
5
Set Alerts for Rotation — Use the screener's alert feature to notify you when a sector crosses from Improving to Leading or from Leading to Weakening. This helps you catch rotation early.
💡 Pro Tip
Combine the RRG screener with the momentum screener to filter individual stocks within a leading sector. For example, if Nifty Bank is in the Leading quadrant, use the momentum screener to find the strongest banking stocks.

Key Indicators in the RRG Sector Rotation Screener

IndicatorThresholdSignalWhy It Matters
RS-Ratio> 100✅ BullishIndicates the sector is outperforming the Nifty 500 index on a relative basis.
RS-Momentum> 100✅ BullishShows that the relative strength is accelerating, confirming upward momentum.
RS-Ratio & RS-Momentum both > 100Leading quadrant⚡ WatchSector is in the strongest quadrant; ideal for long positions.
RS-Ratio < 100 & RS-Momentum < 100Lagging quadrant❌ BearishSector is underperforming and losing momentum; avoid long trades.
✅ Entry Checklist for Leading Sectors
Sector is in the Leading quadrant (RS-Ratio > 100 and RS-Momentum > 100)
RS-Momentum is above 100 and rising for at least 3 consecutive days
Sector index is above its 50-day moving average
Volume on the sector index is above its 20-day average
Avoid sectors with RS-Momentum declining from a peak (potential reversal)
⚠️ Common Mistake
A common mistake is entering a sector as soon as it enters the Leading quadrant without confirming momentum. Wait for RS-Momentum to be above 100 and rising for at least 3 days to avoid false signals.

Try It on QUANTSCASE

Use the RRG sector rotation screener to see real-time sector plots. Combine it with other screeners for a complete trading system.

RRG Sector Rotation →
Visual sector rotation graph with Leading, Weakening, Lagging, and Improving quadrants.
Momentum Screener →
Filter individual stocks with strong relative strength and momentum within leading sectors.
Volume Accumulation Screener →
Check institutional buying in stocks from leading sectors using volume indicators.

Start spotting leading sectors today

Try the RRG Sector Rotation Screener Now

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This guide is for educational purposes only and does not constitute financial advice. Always do your own research before trading.