- The short — session in five lines
- Leaders & laggards
- Breadth, flows & risk
- Sector rotation snapshot
- Wednesday watchlist & levels (illustrative)
The short
- Leaders: Banks and capital goods extended RS; dips were bought.
- Improving: Autos and pharma held gains on steady commentary.
- Laggards: Select IT midcaps faded late; supply showed up on failed breakouts.
- Breadth: Positive vs flat mid-day; cooled into close on profit-taking in smallcaps.
- Macro: FX in range; retail fuel bands unchanged—benign for near-term sentiment (directional).
Leaders & laggards
Leaders
- Banks: Asset-quality comfort + credit growth kept buyers active.
- Capital goods: Backlog visibility, better execution cadence.
- Power/utilities: Demand + tariff clarity supported follow-through.
Laggards
- IT midcaps: Lumpy ramps; demand caution into Q&A kept a lid on moves.
- High-beta microcaps: Late profit-taking where float is tight.
Breadth, flows & risk
- Breadth: Healthy in leaders, mixed in smallcaps; lower quality faded into close.
- Flows: Domestic systematic bids cushioned dips; keep an eye on leverage/unwind into T+1/T+2.
- Risk: Avoid crowded, low-float names near event hours; respect liquidity bands.
Sector rotation snapshot (illustrative)
| Sector | Status | Driver | Risk flag | Carry into Wed |
|---|---|---|---|---|
| Banks | Leader | Credit growth, asset quality | Deposit beta | Favor OCF/EBITDA > 0.8; watch NIM color |
| Capital Goods | Leader | Backlogs, execution | Input costs | Stick to diversified orderbooks |
| Autos | Improving | Festive builds | Inventory overbuild | Monitor dealer weeks; trim if >6 |
| Pharma | Improving | US launches + India mix | US price erosion | Prefer stable GM + remediation progress |
| IT | Cooling | Delayed ramps | US macro sensitivity | Stick to TCO/automation leaders |
| Power | Improving | Demand + tariffs | Fuel linkages | Blend regulated + merchant |
Wednesday watchlist & levels (illustrative)
Setups to track
- Bank leaders holding above prior day VWAP — look for early higher-low entries.
- Capital goods names with fresh order disclosures — focus on execution commentary.
- IT midcaps showing two failed breakouts — consider fades on RS slippage with tight risk.
Risk controls
- In smallcaps, size by ADTV × 10; avoid adding near placement rumors.
- Two rule breaches → step aside; end-of-day P&L is the data.