The problem: too many Stage 2 stocks
After the last close, 750 NSE stocks were in Stage 2 — 30% of the market. That is far too many to buy, and most of them are the wrong ones:
- Some are late — they have already doubled, and the stop you would need is far below.
- Some are in weak sectors — swimming against the current.
- Some are laggards — technically in Stage 2, but trailing the market.
Finding Stage 2 stocks is easy. Finding the right ones is a narrowing process. Here it is in five steps, in the same order as the course.
Step 1 · Check the market
Before you screen anything, ask whether the market is helping. Tonight the market read says Neutral — Fading. In a broad, improving market you can act on good setups; in a weak one, the same setups fail more often, and the right number of new buys may be zero.
Step 2 · Pick the strong groups
Stocks rise in groups, so start where the money is. Here are tonight's sectors and industries with the most Stage 2 stocks — each links to its own list:
- Materials160
- Consumer Discretionary154
- Industrials134
- Health Care80
- Financials64
- Pharmaceuticals64
- Consumer Staples54
- Specialty Chemicals43
- Information Technology40
- Textiles39
- Auto Parts36
- Industrial Machinery35
- Commodity Chemicals33
- Iron & Steel27
- Communication Services21
- Real Estate19
- Sugar19
- Energy17
- Precious Metals, Jewellery & Watches17
- Electrical Components & Equipments17
- Packaging15
- Construction & Engineering15
- Investment Banking & Brokerage13
- IT Services & Consulting13
A big number is good; a rising number is better. The rotation page shows which groups are gaining Stage 2 stocks week by week, and the rotation graph shows which are gaining strength against the market.
Step 3 · Screen for early Stage 2
Inside the strong groups, filter out the stocks that are already stretched. On Stage2Stocks, every stock that is still early in its Stage 2 move carries an early entry badge, and the screener can filter to just those.
Try it on Stage2StocksScreen: early Stage 2 stocksEvery NSE stock in Stage 2 that is still early in the move. Add a sector or industry from step 2 to narrow it further.
If you want only the freshest moves, breakout stocks today lists stocks clearing their recent range tonight.
Step 4 · Prefer the leaders
Of what is left, keep the stocks beating the market. A Stage 2 stock with strong relative strength has buyers who prefer it to almost everything else; one that trails the market doesn't.
See stocks ranked by relative strength → · Why leaders keep leading →
Step 5 · Confirm on the weekly chart
Now — and only now — open the charts. For each name on your short list, take the two glances from lesson 2 and a few more checks:
- The 30-week line is rising, and the price is above it.
- There is a clear base behind the move, and the breakout came on heavy volume.
- The price isn't far above its base or its line — you can place a sensible stop.
- It is trading actively enough that a breakout means something.
- You know where you would sell if you are wrong.
What survives all five steps is usually a handful of names — often none in a weak market. That is the point: fewer, better positions, bought with the market, the sector and the stock all on your side.
Try it on Stage2StocksLet the evening scan do steps 3–4Prop Scan picks Stage 2 stocks at a breakout or pullback entry each evening, still early in the move, grouped by sector.
Questions people ask
What are Stage 2 stocks?
Stocks in the rising stage of Stan Weinstein's four-stage cycle: making higher highs and higher lows, with the price above a rising 30-week moving average. It is the only stage stage analysis buys in.
Should I buy every Stage 2 stock?
No. Many Stage 2 stocks have already run a long way, sit in weak sectors, or trail the market. The best candidates are early in Stage 2, in strong sectors, with strong relative strength — usually a small fraction of the whole list.
How often should I look for Stage 2 stocks?
Once after each close is plenty, and many people do a deeper screen once a week. Stage 2 is a weekly-chart idea; nothing important changes between the open and the close.