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Weekly market review · Friday, 24 July 2026
~2 min read

Nifty -2.3% on the week: Stage-2 cohort shrinks, exits outnumber entries 2-to-1

The slow gauge held but the fast gauge collapsed. 64 names left Stage 2 for every 27 that entered. The tape is deteriorating.
Stage2Stocks Market Desk
Nifty 50
23,767
-2.3% on the week
Regime
Transition
2th day · neutral-to-down
Breadth
41%
above 200-DMA · narrowed from 43%
Stage 1→2 (wk)
27
net -37 vs 2→3
52w highs / lows
125 / 113
net +12
Stage-2 share
33%
-30 stocks this week

Nifty 50 shed 2.3% across the five sessions to close at 23,767.4 — still below its 200-day average and 9.7% below its 52-week high. The structural breadth gauge barely moved, slipping from 42.8% to 41.3% of stocks above their 200-day average, but that relative steadiness flatters the week: the fast short-term gauge collapsed from 38.9% on Thursday to 31.8% by Friday, advancers were routed 560-to-1,651 on Wednesday and the net new-highs count turned negative on Thursday for the first time in the series. The regime has shifted from 'weak but recovering' to transition, and the near-term read is neutral-to-down. This was not a consolidation week — it was a week where the tape quietly handed back most of what it had built.

The flow of stages tells the real story

Across the five sessions, 64 stocks exited Stage 2 into Stage 3 for every 27 that entered from Stage 1 — a net drain of 37 names. The Stage-2 cohort shrank by 30 to 741 stocks, now representing 33.2% of the market. Over 20 days the cohort is still down 0.6, and the 5-day figure of -1.3 confirms the direction of travel. The 60-day figure of +21.4 shows how much ground was built up earlier in the cycle, but that reservoir is being drawn down. When exits outnumber entries by more than 2-to-1 in a single week, the screen is telling you the advancing universe is contracting, not consolidating. The week's 125 new 52-week highs against 113 new lows — a net of just 12 — is the thinnest margin in the continuity series and barely positive after Thursday's net reading of -13.

Sector picture: defensive leadership, cyclical damage

The week's sector table is defensive by default rather than constructive by design. Consumer Staples led with a gain of 0.3%, Consumer Discretionary and Materials were flat at -0.1% each. Real Estate, the 1-month and 3-month standout, gave back 3.0% on the week — the worst performer — and Financials dropped 2.6%. That rotation away from the recent leaders is a warning sign: when the sectors that had been doing the work start underperforming, the advance loses its engine. Health Care remains the strongest 3-month sector at +13.6% and its Stage-2 cohort is among the fastest-expanding, as is Information Technology's — but one week of IT holding up does not offset a broad retreat in everything that had been leading.

This week's stage transitions
StockSectorMoveSetup
IKIO Technologies LtdIndustrials1→28.8
Optiemus Infracom LtdInformation Technology1→28.4
MPS LtdCommunication Services1→28.3
Emami Paper Mills LtdMaterials1→27.7
Jupiter Life Line Hospitals LtdHealth Care1→27.7
Bluestone Jewellery and Lifestyle LtdConsumer Discretionary1→27.5
iValue Infosolutions LtdInformation Technology1→27.5
TTK Prestige LtdConsumer Discretionary1→27.4
Sustained Stage-2 setups (score ≥ 7)
StockSectorSetupRS
Kabra Extrusion Technik LtdIndustrials9.482
RPG Life Sciences LtdHealth Care9.476
Muthoot Microfin LtdFinancials9.492
Kapston Services LtdIndustrials9.496
Sky Gold and Diamonds LtdConsumer Discretionary9.497
Gandhar Oil Refinery (INDIA) LtdEnergy9.294
MPS LtdCommunication Services9.264
Tirupati Forge LtdConsumer Discretionary9.294
Sector performance — cap-weighted, ranked by today’s move
Sector1D1M3MRSStage 2
Information Technology+0.6%+3.4%-2.3%4231%
Consumer Staples+0.2%+0.2%-2.9%5425%
Industrials-0.1%-3.0%+6.4%6936%
Energy-0.1%-0.9%-2.6%5729%
Utilities-0.1%-3.2%-1.1%6320%
Financials-0.2%-1.8%-2.3%6134%
Real Estate-0.2%+6.6%+11.9%4922%
Materials-0.3%-0.2%+0.5%6931%
Consumer Discretionary-0.5%+2.5%+5.1%6836%
Health Care-0.7%+2.1%+13.6%7352%
Communication Services-1.1%+1.7%+7.9%6518%
Breadth note
This week: 5 fresh Stage 2 breakouts and 0 Stage 3→4 breakdowns visible above. Tilt = bullish.
Work the same data live: open the full stock screener, watch the live market dashboard, or check the market-timing regime 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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