Last week's story was a green index and a shrinking advancing cohort. This week added something worth acknowledging: broader participation in the recovery. But it did not change the central problem. More stocks are recovering above moving averages while fewer qualify as advancing trends. The market remains Neutral — Fading, and this is still a recovery within six weeks of deterioration, not a confirmed turn.
Repair is real; replenishment is missing
The weekly improvement in long-term breadth deserves credit. Yet Nifty remains below its 200-day average and 12.1% below its yearly high. Only 36.5% of stocks are above that long-term average.
Thursday's note described breadth repair reversing. That was right for the session but too final as a description of the week: Friday recovered some ground, and weekly breadth finished wider. The repair is uneven, not extinguished.
Trend formation tells a less encouraging story. Over the last five sessions, 13 stocks moved from basing to advancing, against 75 moving from advancing to topping. That rolling balance has been negative for all 30 sessions of the six-week stretch. Friday's 82 yearly highs against 231 lows also leave leadership thin; lows have exceeded highs for 16 sessions.
IT wins the week, not the participation argument
Information Technology rose 9.5%, followed by Communication Services at 3.2% and Energy at 2.7%. Health Care fell 1.3%, while Consumer Staples finished flat.
The IT rally became much more substantial than Tuesday's initial burst. But advancing participation ended at 21.8%, down 2.9 percentage points over 20 sessions. Outsourced services also finished with no net participation expansion over that period. Price leadership has not yet become broad trend leadership.
Energy's mismatch changed shape. Its advancing share slipped from Monday's 58.6% to 51.7%, and its earlier 20-session expansion has disappeared. Despite the weekly price gain, its monthly return remains negative. Financials' erosion also stayed live: just 20.8% are advancing, down 11.7 points over 20 sessions.
The pockets need a more sceptical reading
Paper Products was an early focus, but Wednesday's jump did not establish durable follow-through. Its advancing share ended at 36%, with an eight-point gain over 20 sessions, weaker than the expansion we highlighted early in the week. Our emphasis on that pocket overstated its durability.
There are still narrower areas of expansion. Technology Hardware has 55.6% advancing, up 11.1 points over 20 sessions. Industrials' broader share, however, is only 25.5%. Health Care retains relative strength, but its weekly decline is a reminder that relative resilience is not the same as current price leadership.
Setups remain individual, not market confirmation
Sunflag Iron and Steel Co, Alicon Castalloy and Indo Amines lead the early advancing candidates, with setup scores of 8.8, 8.4 and 7.9 respectively. These are screening candidates, not evidence that the wider market has turned.
This week's stage changes underline both sides of the story. Delta Corp and Gujarat Pipavav Port moved from basing to advancing. Biocon and TTK Prestige moved from topping to declining, a more consequential deterioration than simply missing a setup list.
For the week ahead, the useful test is whether breadth repair starts replenishing advancing trends. A narrower transition deficit would help, but it needs to be accompanied by a stabilising Stage 2 share. Until then, the rally and the trend backdrop remain different stories.
| Stock | Sector | Move | Setup |
|---|---|---|---|
| Delta Corp Ltd | Consumer Discretionary | 1→2 | 8.3 |
| Gujarat Pipavav Port Ltd | Industrials | 1→2 | 4.6 |
| Electrosteel Castings Ltd | Industrials | 1→2 | 2.7 |
| TTK Prestige Ltd | Consumer Discretionary | 3→4 | — |
| Biocon Ltd | Health Care | 3→4 | — |
| Supreme Infrastructure India Ltd | Industrials | 3→4 | — |
| Orissa Minerals Development Company Ltd | Materials | 3→4 | — |
| Lux Industries Ltd | Consumer Discretionary | 3→4 | — |
| Stock | Sector | Setup | RS |
|---|---|---|---|
| Shanti Gold International Ltd | Consumer Discretionary | 10.0 | 95 |
| D P Abhushan Ltd | Consumer Discretionary | 9.2 | 90 |
| One Point One Solutions Ltd | Information Technology | 9.2 | 92 |
| SBC Exports Ltd | Consumer Discretionary | 9.1 | 98 |
| Uttam Sugar Mills Ltd | Consumer Staples | 9.0 | 86 |
| SMC Global Securities Ltd | Financials | 9.0 | 90 |
| OCCL Ltd | Materials | 9.0 | 89 |
| Mukand Ltd | Materials | 8.9 | 83 |
| Sector | 1D | 1M | 3M | RS | Stage 2 |
|---|---|---|---|---|---|
| Information Technology | +2.8% | +7.8% | +6.9% | 54 | 22% |
| Communication Services | +1.6% | +1.3% | +2.8% | 62 | 20% |
| Materials | +0.7% | -1.6% | -2.6% | 64 | 34% |
| Consumer Discretionary | +0.7% | -2.1% | +0.3% | 60 | 29% |
| Industrials | +0.1% | -0.9% | -2.5% | 65 | 25% |
| Financials | +0.1% | -0.9% | -5.5% | 59 | 21% |
| Real Estate | -0.0% | +1.2% | -5.8% | 55 | 16% |
| Health Care | -0.2% | -3.8% | -1.0% | 70 | 40% |
| Utilities | -0.2% | -2.2% | -10.5% | 54 | 10% |
| Consumer Staples | -0.3% | -1.3% | -5.4% | 48 | 30% |
| Energy | -0.4% | -2.8% | -7.1% | 55 | 52% |
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.