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Nifty slips 0.7%; IT leads, Health Care breakouts stack up

Decliners dominated the tape, yet 68 stocks crossed into Stage 2 this week and the advancing cohort keeps widening.

Monday, 1 June 20262 min readStage2Stocks Market Desk

Nifty 50
23,383
-0.7% on the day
Market
Early Recovery
18 sessions in this state
Breadth
33%
above 200-DMA · narrow
Adv / Dec
702 / 1,528
decliners ahead
52w highs / lows
109 / 86
net +23
Stage-2 share
20%
cohort widening

Nifty 50 closed at 23,382.6, down 0.7% on the day and still sitting below its 200-day average — 11.2% off its 52-week high. Decliners led advancers 1,528 to 702, so the surface read is soft. Beneath that, the picture is more constructive: 109 stocks posted fresh 52-week highs against 86 new lows, 16 golden crosses fired versus just 2 death crosses, and the Stage-2 advancing cohort has widened by 7.2 over the last 20 days. The overall regime is in an early recovery, with the near-term read turning — an 18th consecutive day in that posture.

Rotation and sector read

Information Technology was the only sector to finish the day in positive territory with a 1.6% gain — the sole clear winner on an otherwise red tape. Energy and Materials were fractionally lower, effectively flat. Zooming out to one month, Health Care leads the field at +5.1%, followed by Communication Services at +2.3% and Industrials at +2.2%. Over three months the order holds: Health Care at +9%, Industrials at +8.8%, and Utilities at +7.6%. At the other end, Financials have shed 11.9% over three months and Energy is down 8% — both sectors remain in the screener's penalty box. Where the Stage-2 cohort is expanding fastest right now is Consumer Staples, Utilities, and Health Care, in that order — a defensive-to-quality tilt that fits the early-recovery regime.

Breakouts and names on the radar

Health Care dominates today's fresh breakout list. Innova Captab and Krishna Institute of Medical Sciences both cleared the screen with setup scores of 7.4 — the highest in today's batch — while Neuland Laboratories and Kopran each scored 6.8. Birla Cable, from Communication Services, also appeared with a 7.2 score. Among sustained setups, Sakar Healthcare carries a 9.4 score alongside Arvind and Sasken Technologies, the latter representing the IT sector's improving internals. On the volume side, Rubicon Research — also in Health Care — moved 16.5% on volume running at nearly 17 times its average, making it the sector's standout mover of the session. The 68 Stage 1-to-2 transitions recorded over the last five days against only 5 moving the other way underlines that, despite today's index dip, the screener's pipeline is building rather than shrinking.

Leading Stage-2 setups
StockSectorSetup% 1D
Innova Captab LtdHealth Care7.4+1.2%
Krishna Institute of Medical Sciences LtdHealth Care7.4-0.7%
Birla Cable LtdCommunication Services7.2+5.0%
Neuland Laboratories LtdHealth Care6.8+0.6%
Kopran LtdHealth Care6.8-5.0%
Welspun Living LtdConsumer Discretionary6.4+5.2%
Nuvama Wealth Management LtdFinancials6.3+0.2%
Goldiam International LtdConsumer Discretionary5.5+0.2%
Sector performance — cap-weighted, ranked by today’s move
Sector1D1M3MRSStage 2
Information Technology+1.6%+1.3%-1.9%4116%
Energy-0.1%-6.7%-8.0%6129%
Materials-0.2%+0.3%+6.3%7221%
Health Care-0.6%+5.1%+9.0%7128%
Communication Services-0.8%+2.3%+0.4%6511%
Consumer Discretionary-1.0%-1.4%-2.2%6416%
Financials-1.5%-6.0%-11.9%5717%
Industrials-1.9%+2.2%+8.8%6822%
Real Estate-1.9%-2.6%-5.4%425%
Consumer Staples-1.9%-6.0%-4.6%5328%
Utilities-2.3%+0.3%+7.6%6524%
Share of NSE stocks in Stage 2Dec 2025 – May 2026 · weekly
0%10%20%30%40%50%60%70%Jan 26Nifty 50Stocks in Stage 2Latest: 19%
The share of NSE stocks in Stage 2 over the six months to this wrap, with the Nifty's shape above it — the market underneath the day's numbers. Source: Stage2Stocks classification of every NSE stock with enough history, each week.
Try it on Stage2StocksHow to read this chart Lesson 3 of the course: why the Nifty isn't the market, and what the share of stocks in Stage 2 tells you.

Work the same data live: open the full stock screener, watch the live market dashboard, or check the market-timing read. New to the method? Start with the four stages.

Stage2Stocks is an educational stage-analysis screener. These wraps describe what the screen shows across NSE cash equities — they are not investment advice, recommendations, or buy/sell calls. Always do your own research.

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