Two Beaten down Stocks to Watch Ahead of India’s Big Festive Season – Stock Insights News

Financial year 2025-2026 began on a positive note, driven by several macro and microeconomic improvements. In February 2025, the finance minister increased the tax limit to ₹12 lakh. The RBI dramatically eased liquidity and cut interest rates. These developments contributed to rally in the Indian markets; in fact we even outperformed global indices.

Return comparison from 1^st April 2025 to 18^th July 2025

Source: Jainam Research

Given the current market conditions, two stocks in the discretionary spending sector, PVR Inox and Swiggy, stand out as strong investment opportunities. Both stocks are showing positive technical patterns & rising investor interest, making them attractive for long-term gains.

PVR Inox: Breaking out from traditional falling trend – Bullish reversal pattern

Source: Investing.com

Outlook for PVR Inox

PVR Inox has been an underperformer since 2024, seeing a steep correction of 54% from ₹1,830 to ₹830 by April 2025. However, looking back at the festival season in 2024 (July-September), the stock saw a 30% rally, fuelled by large-budget movies and higher footfalls.

Recently, PVR Inox broke out of a short-term ascending triangle pattern at ₹1,000. After consolidating for five months, it has established a consistent higher high, higher low pattern. From February 2025 to June 2025, the stock gained about 24%. It is now trading above its 100 day moving average, supported by increasing volumes, and the daily RSI remains above 60, indicating a sustained bullish trend.

Key Signs Indicating PVR Inox Potential Upside

• Bullish Reversal Pattern Breakout: The stock is breaking out from a short-term consolidation and a bullish reversal pattern, an ascending triangle pattern, signifying that the price should move up.
• 100-Day Moving Average: The stock price has broken the 100DMA again after December 2024 on the daily time frame, which indicates there could be a trend continuation.
• Increasing RSI Momentum: The Relative Strength Index (RSI) is over 60, and multiple bullish divergences are indicating strength, confirming that the share could move up.

Swiggy: Ready for a Potential Up move once again after breakout above IPO day low level

Source: Investing.com

Outlook for Swiggy

Swiggy, one of the most anticipated IPOs, debuted at ₹420 on 13th November 2024 and peaked at ₹617 in December 2024. However, it then corrected sharply by 52%, hitting a low of ₹297 by May 2025. Since then, the stock has recovered by 38%, confirming a breakout from a bullish cup-and-handle pattern. It has also entered a rising price channel and is now trading above its 100-day simple moving average (SMA). The RSI has moved above 55, indicating building momentum.

Key Technical Levels Favouring Swiggy’s Reversal

• Bullish Continue Pattern: The stock was in a time correction, but recently it has given a breakout from the Cup and handle pattern, possibly entering an upward trend again.
• 100-Day SMA: After the 52% correction, the stock has again remained above its 100SMA, which is a classic sign of positive sentiment and a trend reversal.
• RSI Chart and Price Direction: The 14-period weekly RSI moved above 55, indicating bullish divergence and further momentum for price moves upward.

Final Take

With the structural growth in discretionary spending & increasing investor participation, both PVR Inox & Swiggy offer favourable risk reward setups. Investors looking for long term growth may consider accumulating these stocks during dips while ensuring proper risk management. Technically, both stocks exhibit bullish patterns, suggesting potential for both short and long-term gains.

PVR Inox has broken out from an ascending triangle pattern and is trading above key moving averages with a strong RSI, indicating a continuation of the uptrend. Swiggy has confirmed a bullish cup and handle breakout and is showing strengthening momentum with the RSI moving upward, suggesting further upside potential.

Disclaimer

Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only. 

As per SEBI guidelines, the writer and his dependents may or may not hold the stocks/commodities/cryptos/any other assets discussed here. However, clients of Jainam Broking Limited may or may not own these securities.

Kiran Jani has over 15 years of experience as a trader and technical analyst in India’s financial markets. He is a well-known face on the business channels as Market Experts and has worked with Asit C Mehta, Kotak Commodities, and Axis Securities. Presently, he is Head of the Technical and Derivative Research Desk at Jainam Broking Limited.

Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Limited may or may not own these securities.

The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives and resources, and only after consulting such independent advisors if necessary.

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