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26 Sep 2025

How was the week?

Last week I wrote about how Market Breadth is weak. Index was moving up on the back of fewer stocks. Net New Highs weren’t too great. This was a sign to be cautious in any longs. Market (Index) falls if the Market Internals are not doing great. If broader market isn’t participating then there is more probability that your stocks will fall and rollover.

This is what happened this week. Nifty was rolling down the hill slowly, which accelerated today.

Nifty50

24,450 is the level which I will be watching on Nifty. If Nifty sustains below this level, there is a possibility of more pain in short term. Also, since 7 days, Nifty has been falling, next week, there is a possibility of Nifty staging a bounce from the level drawn which is also ~200 EMA

Nifty Smallcap 100

Small cap index has broken 50 EMA (Red Ribbon in image). Anything below 50 EMA tells us to be super cautious in market. The support will be near the blue line next week.

Net New Highs/Lows – NNH is 38 and Lows are 81. This shows the market breadth which is deteriorating

Is there any strong stocks?

Such a market which is painted red, my scan makes it easier to identify sectors and strong stocks. Strong sector is Auto Ancillaries, Chemical Specialty and Auto Manufacturers. Few of the strong stocks are listed below for next week.

Netweb

The stock is high on EPS + RS. If you see, stock broke out of a Long Base and is above 50 EMA comfortably. Always look for such a clean mover stock.

Banco India

The stock is high on EPS + RS. The stock is also consolidating and didn’t fall today inspite of market in red. Trying to make a flag pattern which is a bullish continuation pattern in technical analysis.

Subros

Again similar characteristic of the stock with towering volumes and staying put at the highs.

Anantraj

The stock was a winner in the past. You may refer the chart on tradingview. Now we can see that the stock is trying to make a comeback with explosive volumes and consolidating in a small range. Stock is also a high EPS stock.

Parting Shorts

People look for stocks at the low, cheap in price. Let me tell you, all greatest traders/people who know the soul of market will do the opposite – Look for the strongest stocks floating near All Time Highs. Try this and your selection will improve. As Dan Zanger says – ” Winning horses do not come back to the gate.”

Happy Learning!