Is Your Portfolio Stock Really Outperforming?

[Nishant Bhandari-1773737014907]

A simple way to check whether your portfolio stocks are truly outperforming is by using ratio charts on Point & Figure (0.5 x 3).
Recently, both ICICI Bank and HDFC Bank reported decent results. But choosing the better performer isn’t always easy just by looking at price or fundamentals. This is where relative strength (ratio charts) can help.

Here, I compared:
ICICI Bank / Nifty 50
ICICI Bank / Bank Nifty
ICICI Bank / HDFC Bank
ICICI Bank / SBI

From this, ICICI Bank appears to be outperforming most of them, except SBI, which is also showing relative strength.
This suggests that while ICICI Bank has been strong, SBI may also be worth tracking from a relative performance perspective. On the other hand, HDFC Bank appears relatively weaker in comparison.
Additionally, the 45° trendline breakdown in the SBI ratio chart indicates a possible shift in relative strength, which is something to observe going forward.

Also, if these ratio charts start changing their trend, it may be useful to review and adjust allocations accordingly, as relative strength within the portfolio evolves over time.
Overall, this kind of analysis can help in understanding relative performance within your portfolio and making more informed allocation decisions.