What it is

Relative Strength ek simple sawal ka answer hai: "yeh stock NIFTY 500 se behtar perform kar raha hai ya kharaab?" Trend state direction batata hai (UP / DOWN). RS batata hai direction ke saath relative speed.

Ek analogy. Soch ek highway — sab cars same direction mein chal rahi hain. RS leader woh hai jo overtake kar raha hai. RS laggard woh hai jo pichhe gir raha hai. Dono aage ja rahe hain — speed alag hai. RS direction matter nahi karta, relative speed matter karti hai.

Tietiy teen RS classifications use karta hai — sabhi descriptive labels, koi prediction nahi:

  • Leader — stock NIFTY 500 ke return ko consistently outperform kar raha hai (typically 252-day rolling window, RS rank top decile).
  • Laggard — index ke return se neeche chal raha hai. Trend UP bhi ho sakta hai, lekin index ne ussey zyada de diya.
  • Divergent — RS slope aur trend slope opposite ja rahe hain. Often early-signal of regime change for that name. (Use carefully — divergence false positives bhi deti hai.)

How tietiy computes it

RS comes from a scope=universe producer — matlab yeh symbol-by-symbol nahi compute hota. Engine pehle har stock ke 252-day return calculate karta hai, NIFTY 500 ka return calculate karta hai, fir ratio leta hai. Ratio ka percentile rank (1–100) hi RS rank hai.

Classification rule simple aur deterministic hai:

  • RS rank ≥ 80 = leader
  • RS rank ≤ 20 = laggard
  • 20 < rank < 80 = neutral (no label)
  • Divergent ek separate detector hai — RS slope (last 20 days) aur price slope (last 20 days) ke signs compare karta hai. Opposite = divergent.

Min-history gate 250 daily bars hai (Phase-2 decision). Naye-listed stocks ko "insufficient_history" caveat milta hai, koi RS label nahi.

What this site shows you

Stock page pe RS rank ek number (0–100) aur ek classification chip ke saath dikhega — jaise "RS rank 87 · leader". Markets page pe "today's RS leaders" aur "RS laggards" sections hote hain (top 10 each). Sector-rotation strip RS rank ko sector-wise aggregate karke present karta hai — kaunsa sector aaj outperform kar raha hai.

How to read it

  • RS leader + trend UP + favourable regime = textbook strongest descriptive read. Context only — entry abhi bhi aapka call.
  • RS leader + trend DOWN = market gir raha hai aur yeh stock kam gira hai. "Defensive leader" — bear market mein matter karta hai.
  • RS laggard + trend UP = stock chadhraha hai par index aur tezi se chada. Often a tired leader or sector rotation away.
  • Divergent labels ko "early warning" ki tarah dekhna hota hai — false positive rate non-trivial hai. Confirmation as separate read.
  • RS rank har shaam recompute hota hai — yeh fixed nahi hai. Aap "kal leader tha, aaj neutral" jaise transitions dekhoge — normal hai.

What this does NOT tell you

  • Absolute return. RS sirf bench se compare karta hai. Index gir raha ho, leader bhi gir raha ho sakta hai — bas kam gira hoga.
  • Why a stock is leading. Earnings beat? Sector tailwind? Promoter buy? RS pure-price answer hai — driver alag analysis hai.
  • Continuation probability. Leadership rotates. Aaj ka leader kal ka laggard ho sakta hai. RS rank base-rate evidence ke saath padhna chahiye, blind extrapolation nahi.
  • Sector-relative RS. Tietiy v1 NIFTY 500 ke against rank deta hai. Sector-relative RS future addition hai.

Why this matters more in bull regimes. Market wide-rally mein, RS leaders historically alpha generate karte hain. Choppy / bear regime mein RS rank ka signal-to-noise drop hota hai. Isi liye tietiy par RS chip aur market-regime light dono ek saath dikhte hain — context.