Friday's breadth setback reversed, and Nifty has regained its 50-day average. That improves the backdrop for reviewing setups tomorrow. The market remains Neutral — Fading, however, with fewer stocks in advancing trends despite the rally. This still calls for selective screening rather than a broader search for exposure.
Breadth repairs, trends still drain
The share above the 20-day average recovered to 28.1% from 20.7% on Friday. Yearly lows fell to 277 from 465, though they still exceeded highs. Only 32.3% are above their 200-day average.
A correction to Friday's note: tonight's history puts Friday's Stage 2 share at 26%, not the 22.9% we reported. Today's 25.3% is a further decline, not a recovery. Over five sessions, 11 stocks moved from basing to advancing while 106 moved from advancing to topping. The trend drain we have been following remains intact.
Energy changes the price story
Energy's jump reverses the weak price picture we discussed on Friday, but participation has not followed. Its advancing share remains 48.3%. The current 20-session decline is 20.7 percentage points, substantially deeper than the 6.9 points cited in Friday's note.
Refining and marketing rose 9.8%, with 37.5% advancing. That makes it a pocket to inspect for trend confirmation rather than treating the sector surge as sufficient evidence. Health Care still leads relative strength at 74.5, while biotechnology has expanded its advancing share by 11.1 points over 20 sessions.
Tomorrow's review stays stock-specific
Tech Mahindra leads the early-stage setup list with a score of 8.2, followed by Kotak Mahindra Bank at 7.9. Indian Hotels Company follows at 7.8. These are chart-review candidates, not signals to act simply because the index rallied.
IT was flat today despite a 12.3% monthly gain; only 23.3% of the sector is advancing. Mphasis returned to Stage 2, keeping the participation question live. Public banks retain their 8.3-point expansion over 20 sessions, against continued erosion across Financials.
Existing watchlists need attention too. Prime Focus and Paradeep Phosphates moved from advancing to topping tonight. LT Foods and Tamilnad Mercantile Bank made the same move. Review those stage changes before expanding tomorrow's shortlist.
| Stock | Sector | Setup | % 1D |
|---|---|---|---|
| Tech Mahindra Ltd | Information Technology | 8.2 | -0.2% |
| Kotak Mahindra Bank Ltd | Financials | 7.9 | -0.7% |
| Indian Hotels Company Ltd | Consumer Discretionary | 7.8 | +1.3% |
| Patel Retail Ltd | Consumer Discretionary | 7.4 | +1.4% |
| Sejal Glass Ltd | Industrials | 7.3 | +0.7% |
| Permanent Magnets Ltd | Industrials | 7.0 | -2.5% |
| Cyient Ltd | Information Technology | 7.0 | +0.6% |
| Sector | 1D | 1M | 3M | RS | Stage 2 |
|---|---|---|---|---|---|
| Energy | +8.6% | +6.1% | -1.4% | 62 | 48% |
| Utilities | +2.5% | -0.9% | -8.0% | 68 | 6% |
| Materials | +2.5% | -4.0% | -5.8% | 67 | 31% |
| Industrials | +1.7% | -4.2% | -4.4% | 68 | 23% |
| Consumer Discretionary | +1.5% | -1.8% | -3.2% | 62 | 27% |
| Consumer Staples | +1.4% | -2.2% | -9.0% | 47 | 25% |
| Financials | +1.3% | -0.6% | -6.8% | 59 | 20% |
| Communication Services | +1.0% | +6.7% | +2.0% | 67 | 16% |
| Real Estate | +1.0% | -2.9% | -5.7% | 54 | 16% |
| Health Care | +0.2% | -0.1% | +0.6% | 74 | 39% |
| Information Technology | -0.0% | +12.3% | +3.3% | 57 | 23% |
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.