Captures outperformance by rotating into strongest sectors and away from weakest
| Strategy Type | Sector Rotation / Relative Strength Trading |
| Market Outlook | Captures outperformance by rotating into strongest sectors and away from weakest |
| Risk Profile | Moderate - diversified across sectors with relative positioning |
| Reward Profile | Consistent alpha generation from sector momentum and rotation |
| Time Horizon | Swing to positional (1-4 weeks typical holding period) |
| Capital Requirement | Higher (₹5,00,000 - ₹10,00,000 for multi-sector positions) |
| Margin Type | NRML for positional sector trades |
| Best Used When | Clear sector divergence exists, economic cycle transitions, sector-specific catalysts present |
| NIFTY | 25 units per lot (₹50 per point) |
| BANKNIFTY | 15 units per lot (₹15 per point) |
| FINNIFTY | 25 units per lot (₹25 per point) |
| Stock Futures | Varies by stock |
| Banking | BANKNIFTY, FINNIFTY - 35%+ of NIFTY weight |
| It | TCS, Infosys, HCL Tech, Wipro, Tech Mahindra |
| Energy | Reliance, ONGC, BPCL, IOC |
| Auto | Maruti, Tata Motors, M&M, Bajaj Auto |
| Pharma | Sun Pharma, Dr Reddy's, Cipla, Divis Labs |
| Metals | Tata Steel, JSW Steel, Hindalco, Vedanta |
| Fmcg | ITC, HUL, Nestle, Britannia |
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