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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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