The basis of this tool is the Nifty Total Market Index, which monitors the performance of 750 stocks across various market segments, including large, mid, small, and microcap sectors. These stocks are categorized into 22 different sectors.

Why Nifty Total Market?

Nifty Total Market Index plays a pivotal role in this tool due to its substantial 95.5% weightage in the overall Market Capitalization of all NSE-listed stocks. This makes it an ideal benchmark for assessing the overall market performance.

Calculation:

This tool continuously tracks the performance of the last 50 trading sessions, evaluating four key parameters: price, volume, trend, and strength. These parameters are assessed over a time interval of 5 sessions.

Base value for each parameter: The rolling average of the preceding 50 sessions.

A relative score is assigned to each stock based on its performance, and an average score is calculated for each sector.

Understanding the Rotation Levels:

This tool offers two essential levels of rotation:

First Level Rotation: This level provides a comprehensive view of the Indian stock market by comparing the performance of 22 different sectors. It helps users identify the relative strength and performance of these sectors.

Second Level Rotation: The second level offers Stock-Wise Rotation, making it convenient for analysts to select individual stocks within the most prominent sectors.

How to Read and Use?

Sorting: To identify strong stocks or sectors, users can sort the table in descending order based on the score. A higher score indicates better relative strength for the stock or sector.

Trend Analysis: For a more detailed analysis, users should compare scores row by row, paying particular attention to the latest column. A higher value in this column signifies a better trend in the relative strength of the stock or sector.