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Nifty slips 0.3%; Stage-2 cohort keeps widening

Breadth is narrow but improving — Health Care and Comms led; 8 fresh breakouts cleared the screen today.

Wednesday, 3 June 20262 min readStage2Stocks Market Desk

Nifty 50
23,406
-0.3% on the day
Market
Neutral — Building
2 sessions in this state
Breadth
34%
above 200-DMA · narrow
Adv / Dec
908 / 1,312
decliners ahead
52w highs / lows
136 / 89
net +47
Stage-2 share
21%
cohort widening

Nifty 50 closed at 23,405.6, down 0.3% on the day, and remains below its 200-day average — sitting 11.1% under its 52-week high. The overall regime is weak but recovering, now in its second day of that read, with the near-term signal neutral-to-up. Decliners led advancers 1,312 to 908, so the tape is narrow, but the underlying structure is quietly improving: 136 stocks posted 52-week highs against 89 new lows, and 16 golden crosses registered versus just 2 death crosses.

Breadth and Stage-2 picture

Only 33.7% of NSE stocks sit above their 200-day average, though 56.6% are above their 50-day and 38.3% above their 20-day — a profile consistent with a market that has bounced off lows but has not yet reclaimed broad participation. The Stage-2 advancing cohort now stands at 21.3% of the universe, and the trend is constructive: it has widened by 3.6 over the last 5 days, 7.8 over 20 days, and 8.2 over 60 days. Reinforcing that, 75 stocks moved from Stage 1 basing into Stage 2 advancing over the last five sessions, against just 4 moving the other way into Stage 3 topping — a net of 71 fresh entrants into the advancing stage. Consumer Staples, Utilities and Information Technology are the sectors where the Stage-2 cohort is expanding fastest right now.

Sector rotation and standout movers

On the day, Health Care and Communication Services each edged up 0.5%, with Consumer Discretionary adding 0.3% — modest gains, but they sit atop the one-month and three-month rankings as well. Communication Services leads the one-month table at +5%, Health Care follows at +3.8%, and over three months Industrials is the strongest sector at +9.7%, with Health Care at +7.9% and Communication Services at +6%. Financials and Energy remain the three-month laggards at -11.6% and -7.2% respectively. Among today's high-volume standouts, Savita Oil Technologies moved 17.6% on volume running at 41.2 times its average, while Emkay Global Financial Services rose 20% on 25.8 times normal volume — both flagged by the screener purely on the basis of price and volume expansion, not as actionable calls.

What cleared the screen today

Eight stocks registered fresh breakouts in today's scan. Zydus Lifesciences carries the highest setup score of the group at 8.3, screening from Health Care — the sector that has held up best across all three time frames. V2 Retail cleared at 7.7 from Consumer Discretionary, and Gandhar Oil Refinery came through at 7.5 from Energy, notable given that sector's three-month underperformance. Among sustained setups — stocks that have held clean Stage-2 structure over multiple sessions — Stylam Industries leads at a setup score of 9.8, followed by Avalon Technologies at 9.6 and Bliss GVS Pharma at 9.6. The full breakout and transition tables are below.

Leading Stage-2 setups
StockSectorSetup% 1D
Zydus Lifesciences LtdHealth Care8.3-0.2%
V2 Retail LtdConsumer Discretionary7.7+2.2%
Gandhar Oil Refinery (INDIA) LtdEnergy7.5+0.9%
Artemis Medicare Services LtdIndustrials7.3-0.9%
BLS E-Services LtdInformation Technology7.2+0.4%
Chembond Chemicals LtdMaterials6.6-0.6%
Niva Bupa Health Insurance Company LtdFinancials6.50.0%
Pondy Oxides and Chemicals LtdMaterials6.4-1.6%
Sector performance — cap-weighted, ranked by today’s move
Sector1D1M3MRSStage 2
Health Care+0.5%+3.8%+7.9%7129%
Communication Services+0.5%+5.0%+6.0%6511%
Consumer Discretionary+0.3%-0.4%-1.7%6518%
Financials+0.2%-5.6%-11.6%5718%
Energy+0.0%-7.7%-7.2%6236%
Industrials-0.1%+1.6%+9.7%6823%
Materials-0.2%+2.3%+5.1%7223%
Utilities-0.4%-1.0%+5.5%6426%
Consumer Staples-0.7%-5.4%-4.4%5230%
Real Estate-1.4%-4.2%-3.6%427%
Information Technology-4.4%+1.0%-0.1%4118%
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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