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Nifty +2.6% on the week — real breadth, real caveats

The Stage-2 cohort added 20 names, IT led sectors, but the index is still below its 200-day and 7.4% off its high.

Friday, 31 July 20263 min readStage2Stocks Market Desk

Nifty 50
24,384
+2.6% on the week
Market
Neutral — Fading
7 sessions in this state
Breadth
44%
above 200-DMA · widened from 41%
Stage 1→2 (wk)
44
net +9 vs 2→3
52w highs / lows
143 / 92
net +51
Stage-2 share
34%
+20 stocks this week

Nifty 50 gained 2.6% across five sessions to close at 24,383.6 — a genuine week, not a one-day spike. The slow structural gauge, the share of stocks above their 200-day average, widened from 41.3% to 43.7%, and the Stage-2 advancing cohort grew by 20 names to 761 stocks, or 34.1% of the market. Forty-four stocks crossed from Stage 1 into Stage 2 against 35 moving the other way, a net gain of nine — modest, but the flow is in the right direction. The honest caveat: the index is still below its own 200-day average and sits 7.4% beneath its 52-week high, so this is a market recovering from damage, not one that has repaired it.

How the week was built — and where it wobbled

The week was not a clean, uniform advance. Monday opened with a down session and net new highs of just 12 — barely a pulse. Tuesday delivered the week's best single day, with advancers running nearly 2-to-1 over decliners and net new highs jumping to 68. Wednesday then gave almost all of that participation back: decliners outnumbered advancers 1,565 to 642 and the fast short-term breadth gauge — the share of stocks above their 20-day average — fell back to 34.1%. Thursday recovered sharply again, and by Friday the fast gauge had climbed to 41%, advancers led 1,349 to 857, and net new highs closed the week at 51. The pattern across the five sessions is two steps forward, one step back, with each recovery landing slightly higher than the last. That is accumulation behaviour, not distribution — but the alternating sessions mean conviction is not yet uniform across the market.

Information Technology led all sectors for the week at +4.7%, consistent with its position as the one-month leader at +10.2% and the sector where the Stage-2 cohort has been expanding fastest over the past 20 days. Communication Services added 3.7% and Consumer Discretionary 3.6%. At the other end, Utilities shed 0.4% and Consumer Staples managed just 0.4% — both effectively flat while the rest of the market moved. Health Care, the three-month leader at +16%, and Real Estate, where the Stage-2 cohort is also expanding quickly, both sit in the deeper backdrop as structural sources of strength. Energy remains the three-month laggard at -5.3% and has not featured in any weekly leadership table.

What cleared the screen this week

Among the week's Stage 1-to-2 transitions, Real Estate names were conspicuous: Lodha Developers, Anant Raj and Godrej Properties all crossed the threshold, which aligns with Real Estate's position as both a one-month and three-month leader and a sector where the advancing cohort is widening. Huhtamaki India from Materials and Share India Securities from Financials also cleared the transition screen with setup scores above 8. In the sustained-setup list — names that have held their Stage-2 structure across multiple sessions — Kabra Extrusion Technik from Industrials carries the week's highest setup score at 9.6, followed by Consolidated Finvest and Kapston Services, both also from Industrials and Financials respectively. Tourism Finance Corporation of India has now held a clean setup for 23 weeks; MM Forgings for 29. Longevity in a base is not a trigger, but it does indicate that neither name has been shaken out through a difficult few months for the broader market.

On the pullback side, RPG Life Sciences from Health Care screens at a setup score of 9 — the sector's three-month leadership makes the structural backdrop for that name more credible than it would be in a lagging sector. Sky Gold and Diamonds carries the highest relative-strength rank among the pullback names at 97. The regime remains in transition with a neutral-to-down near-term read, and the index has not yet reclaimed its 200-day average — that is the single most important structural fact of the week. The screen is doing its job surfacing names; the backdrop says fewer of them will follow through cleanly until that average is cleared.

This week's stage transitions
StockSectorMoveSetup
Huhtamaki India LtdMaterials1→28.8
Share India Securities LtdFinancials1→28.4
Lodha Developers LtdReal Estate1→28.4
Tatva Chintan Pharma Chem LtdMaterials1→28.3
Pricol LtdConsumer Discretionary1→27.8
Anant Raj LtdReal Estate1→27.5
Godrej Properties LtdReal Estate1→27.3
Stallion India Fluorochemicals LtdMaterials1→27.0
Sustained Stage-2 setups (score ≥ 7)
StockSectorSetupRS
Kabra Extrusion Technik LtdIndustrials9.687
Consolidated Finvest & Holdings LtdFinancials9.492
Kapston Services LtdIndustrials9.496
Tourism Finance Corporation of India LtdFinancials9.396
MM Forgings LtdMaterials9.392
MPS LtdCommunication Services9.277
Diamond Power Infrastructure LtdIndustrials9.296
RPG Life Sciences LtdHealth Care9.076
Sector performance — cap-weighted, ranked by today’s move
Sector1D1M3MRSStage 2
Financials+1.2%-0.2%+2.0%6236%
Industrials+1.1%-2.3%+6.8%7036%
Consumer Discretionary+1.1%+3.9%+8.8%7037%
Utilities+1.0%-3.3%-2.3%6321%
Energy+1.0%+1.3%-5.3%6129%
Health Care+0.5%+3.6%+16.0%7552%
Materials+0.4%+1.0%+2.8%6933%
Real Estate+0.2%+4.3%+14.2%5325%
Communication Services+0.1%+3.9%+9.6%6419%
Consumer Staples-0.8%-1.6%-1.9%5522%
Information Technology-0.9%+10.2%+4.3%4732%
Share of NSE stocks in Stage 2Feb 2026 – Jul 2026 · weekly
0%10%20%30%40%50%60%70%Jul 26Nifty 50Stocks in Stage 2Latest: 34%
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.

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