Relative Strength Ratio

When comparing a stock’s strength against NIFTY 50, the Relative Strength (RS) is calculated to measure how the stock is performing relative to the index. This is different from the RSI but is often used alongside it.

How It Works:
Relative Strength (RS) Calculation:

𝑅
𝑆
=
Stock Price
NIFTY 50 Price
RS=
NIFTY 50 Price
Stock Price
​

This shows how a stock is performing relative to the NIFTY 50 index.

Relative Strength Ratio Over Time:

If the RS value is increasing, the stock is outperforming NIFTY 50.
If the RS value is decreasing, the stock is underperforming NIFTY 50.