Yesterday we highlighted renewed breadth support. Today that repair reversed despite the index gain. Yearly lows rose from 294 to 423, while only 26.3% of stocks remain above their 200-day average. Neutral — Fading still calls for selective screening rather than a broader search for entries.
The trend filter gets tighter
The shrinking advancing cohort remains the main constraint. Over five sessions, 7 stocks moved from basing into advancing trends against 89 moving from advancing into topping. That balance improved slightly from yesterday, but it offers little evidence of trend repair. The median setup score also reached a six-week low of 4.4. For the next session, reviewing Stage 2 exits deserves priority over expanding the watchlist.
IT's recovery loses participation again
Yesterday's partial recovery in IT participation has reversed. Its monthly gain is now 13%, but fewer stocks qualify as advancing. Health Care still leads relative strength and rose 0.9%; its advancing share nevertheless eased to 32%. These remain pockets to examine stock by stock, rather than evidence of broad sector health.
Paper Products also gave back yesterday's improvement. It fell 2.2%, with advancing participation down to 24% from 28%. Telecom equipment dropped 4.3% despite holding its advancing share at 50%. Neither pocket earns a wider watchlist on tonight's showing.
Early names, with exits in view
Shringar House of Mangalsutra leads the early-stage watchlist with a setup score of 8.4. Tech Mahindra follows at 8.2 after yesterday's return to Stage 2, though it is already 11.4% above its 50-day average. These are chart-review candidates, not a signal that market conditions have improved.
L&T Technology Services entered Stage 2 tonight. In the other direction, Radico Khaitan and Netweb Technologies India moved into topping. Devyani International and Ramkrishna Forgings also left Stage 2. For anyone tracking those names, the loss of advancing status matters more than the green index close.
| Stock | Sector | Setup | % 1D |
|---|---|---|---|
| Shringar House of Mangalsutra Ltd | Consumer Discretionary | 8.4 | -3.4% |
| Tech Mahindra Ltd | Information Technology | 8.2 | +1.2% |
| Indian Hotels Company Ltd | Consumer Discretionary | 7.8 | +0.2% |
| Patel Retail Ltd | Consumer Discretionary | 7.4 | -0.3% |
| Kotak Mahindra Bank Ltd | Financials | 7.1 | +0.6% |
| Cyient Ltd | Information Technology | 7.0 | -0.8% |
| Sector | 1D | 1M | 3M | RS | Stage 2 |
|---|---|---|---|---|---|
| Health Care | +0.9% | -2.4% | +1.0% | 75 | 32% |
| Information Technology | +0.8% | +13.0% | +2.3% | 59 | 21% |
| Utilities | -0.1% | -2.5% | -9.2% | 59 | 5% |
| Energy | -0.5% | -2.0% | -8.1% | 55 | 48% |
| Communication Services | -0.5% | +4.9% | +1.2% | 68 | 14% |
| Consumer Discretionary | -0.7% | -3.0% | -3.5% | 62 | 25% |
| Financials | -0.7% | -1.4% | -6.8% | 59 | 17% |
| Real Estate | -0.9% | -2.3% | -6.4% | 55 | 14% |
| Consumer Staples | -1.0% | -3.9% | -10.9% | 47 | 23% |
| Materials | -1.1% | -6.4% | -7.8% | 66 | 28% |
| Industrials | -1.4% | -5.6% | -4.8% | 66 | 22% |
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.