Stock Picks of the Day for June 05, 2018: 3 stock ideas that could return up to 9%

The midcap and smallcap indices have been underperforming the Nifty since May 9. From those levels, the Nifty has fallen only a percent while the midcap and smallcap indices have declined 7 percent and 9 percent, respectively.

It has been 85 sessions since January 29 when the Nifty formed an all-time high at 11,171. Of these 85 sessions, the advance-decline ratio remained positive in only 25 sessions. In 2008, the advance-decline ratio remained positive in 35 out of the 85 sessions after Nifty formed a top at 6,357 on January 8.

This data indicates that even though the Nifty is placed just 5 percent from its recent high, the market breadth has remained negative for more number of sessions this time around as compared to the 2008 bear market when Nifty fell more than 22 percent from the top in the first 85 sessions.