Yesterday's cooling in daily breadth reversed, with advancers outnumbering decliners by 1.5 to one. The repair has more support tonight, but advancing trends are still being lost. The market remains Neutral — Fading. Tomorrow's routine still favours selective chart review over treating the index bounce as permission to broaden the watchlist.
Energy's cushion shrinks
Yesterday we flagged Energy's price setback while participation held. Tonight prices recovered, but that participation cushion cracked. Energy still has the highest advancing share among sectors, though it is now down 6.9 percentage points over 20 sessions. Oil India moved from advancing into topping.
Health Care retains the strongest relative-strength score at 73.1, but leadership needs qualification: its advancing share is down 14.8 points over 20 sessions. GlaxoSmithKline Pharmaceuticals left Stage 2 tonight. Rubicon Research and Neuland Laboratories also moved into topping. Relative strength is not protection against individual trend deterioration.
The rally and the trend are different maps
Utilities led today's sector gains at 2.7%, yet only 6.4% of its stocks are advancing. That makes it a rebound leader rather than an established source of Stage 2 breadth.
IT's participation setback partly reversed, reaching 21.9%, while its monthly gain rose to a sector-leading 10.2%. Tech Mahindra returned from topping to advancing. That is a useful development to monitor, although the sector's advancing share remains below its level 20 sessions ago.
Across the market, only six stocks moved from basing to advancing over the last five sessions, against 91 moving from advancing to topping. Better daily breadth has yet to repair that imbalance.
Keep the stock work selective
Indian Hotels Company leads the early-stage setup list with a score of 7.8. Persistent Systems and Cyient offer IT charts to study, sitting 5.1% and 4.7% above their own 50-day averages respectively. These are screening candidates, not signals to act.
For tomorrow's review, give existing holdings that left Stage 2 at least as much attention as fresh setups. A rising index has not stopped the advancing cohort from shrinking.
| Stock | Sector | Setup | % 1D |
|---|---|---|---|
| Indian Hotels Company Ltd | Consumer Discretionary | 7.8 | +0.6% |
| Patel Retail Ltd | Consumer Discretionary | 7.4 | +2.4% |
| Alicon Castalloy Ltd | Consumer Discretionary | 7.4 | -1.2% |
| Sejal Glass Ltd | Industrials | 7.4 | -6.4% |
| Persistent Systems Ltd | Information Technology | 7.2 | +0.5% |
| Kotak Mahindra Bank Ltd | Financials | 7.1 | +4.3% |
| Cyient Ltd | Information Technology | 7.0 | -1.0% |
| Sector | 1D | 1M | 3M | RS | Stage 2 |
|---|---|---|---|---|---|
| Utilities | +2.7% | -2.3% | -9.5% | 57 | 6% |
| Real Estate | +2.5% | -3.0% | -7.5% | 54 | 14% |
| Consumer Staples | +2.0% | -3.9% | -10.2% | 47 | 24% |
| Communication Services | +1.4% | +5.5% | +1.8% | 65 | 14% |
| Financials | +1.3% | -1.4% | -6.4% | 59 | 17% |
| Industrials | +1.2% | -4.2% | -4.5% | 66 | 23% |
| Information Technology | +0.9% | +10.2% | +1.2% | 59 | 22% |
| Energy | +0.7% | -2.6% | -6.8% | 53 | 48% |
| Materials | +0.5% | -5.9% | -7.1% | 65 | 29% |
| Health Care | +0.5% | -2.9% | -0.3% | 73 | 33% |
| Consumer Discretionary | +0.2% | -3.1% | -2.3% | 61 | 25% |
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.