The stock market is a dynamic environment characterized by cycles of growth and decline, never following a linear path. After a remarkable climb from the pandemic-induced lows in 2020 to euphoric highs in September 2024, Indian stocks recently faced a correction, particularly in Q4-2024. This pullback continued into early 2025, with March and April witnessing significant volatility.

Market Dynamics: Profit Booking and Stock Rebounds

Amid this tumultuous period, several stocks fell to their 52-week lows. However, savvy investors began to notice a trend: certain stocks were not only bouncing back but also seeing an increase in trading volume—a classic sign of accumulation. This scenario suggests that the recent bear market may have shaken out weaker investors, paving the way for potential long-term gains.

To identify promising opportunities, we focused on stocks that not only recovered from their lows but also exhibited trading volumes at least 100% higher than their 10-month averages. This unique combination could indicate a shift towards a bullish trend.

Here are three stocks that deserve your attention:

1. Tata Elxsi: Innovation in Design and Technology

Tata Elxsi stands out as a premier provider of design and technology services across various sectors, including automotive, media, communications, and healthcare. The company has been instrumental in driving innovations, from autonomous vehicles to over-the-top (OTT) platforms.

• Recent Performance: After dipping below a significant swing low, Tata Elxsi’s stock made a notable recovery from its 52-week lows. This reversal suggests a typical bear trap, where weaker investors exit while savvy ones seize the opportunity.
• Volume Surge: The stock’s trading volumes surged, doubling its previous averages, signaling strong buying interest. This behavior indicates that the stock may be poised for a new upward trend.

2. Delhivery: Backbone of India’s Logistics

As India’s largest fully integrated logistics provider, Delhivery supports the supply chains of businesses nationwide. The company is crucial for the thriving e-commerce and industrial distribution sectors, offering services from express parcel delivery to warehousing and cross-border logistics.

• Stock Insights: In March 2025, Delhivery’s stock hit an all-time low of ₹236, forming a narrow range candle—an indication that selling pressure might be waning.
• Recovery and Volume: Following a market rebound in April, Delhivery’s stock surged past ₹300, buoyed by its highest monthly trading volumes in recent years. This pattern of rising prices alongside increasing volumes often signals the early stages of a robust bullish trend.

3. Vardhman Textiles Ltd (VTL): A Textile Powerhouse

Vardhman Textiles is a leading name in India’s textile sector, specializing in yarn, fabric, sewing threads, acrylic fibers, and garments. With a reputation for quality and innovation, VTL serves some of the biggest brands in fashion.

• Market Trends: Demonstrating the principles of Dow Theory, Vardhman Textiles has resumed its pattern of higher highs and higher lows, indicating a strong bullish trend.
• Volume Validation: After a lengthy phase of consolidation, the stock recently surged with trading volumes not seen in three years, confirming renewed bullish momentum. This breakout can often signify a structural shift, presenting opportunities for patient investors.

Conclusion: Identifying Opportunities in Volatility

Market fluctuations frequently unveil lucrative opportunities for those who can differentiate between the noise and meaningful signals. Stocks like Tata Elxsi, Delhivery, and Vardhman Textiles have not only rebounded from their lows but are also showing critical signs of accumulation supported by robust volumes—key ingredients for a sustainable rally.

Keep these stocks on your watchlist; the next significant market movement may be closer than it appears.

Disclaimer

This article is intended solely for educational purposes and is not a recommendation. For investment decisions, consulting with a financial advisor is strongly recommended. The information presented reflects personal views and interpretations, and investors are encouraged to conduct their own research tailored to their individual goals and circumstances.