As the market navigates through volatility, these three stocks are showing signs of accumulation, offering potential opportunities for long-term growth.
After a powerful rally from 2020 to 2024, the Indian stock market experienced a phase of profit-booking and volatility in early 2025, with many stocks hitting 52-week lows. Despite this market turbulence, three stocks—Tata Elxsi, Delhivery, and Vardhman Textiles—have started showing signs of revival, gaining buying interest as they bounce back from their lows. Rising volumes and price reversals suggest that these stocks could be in the early stages of a bullish trend.
The stock market operates in cycles, oscillating between bullish surges and bearish corrections. After a stellar rally that took Indian equities to euphoric highs in September 2024, the market faced the reality of profit-taking in the final quarter of 2024. This led to a correction that spilled over into the first quarter of 2025, with March and April seeing heightened volatility.
As stocks tumbled to their 52-week lows during this correction, savvy investors began noticing some unusual patterns. Stocks that had hit new lows were not just showing price increases, but also experiencing a spike in trading volumes. This rare combination could indicate that the worst is over, with the bear market shaking out weak hands and making way for long-term opportunities.
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Tata Elxsi: A Strong Reversal Amid Volatility
Tata Elxsi, a global leader in design and technology services for industries like automotive, media, communications, and healthcare, is showing a remarkable rebound. After experiencing a breakdown below a key swing low, the stock staged a sharp bullish reversal from its 52-week low.
This move is indicative of a “bear trap,” where weak investors exit, and strong hands step in. The sharp rise in volumes—doubling the 10-month average—confirms that smart money is flowing into the stock. With a potential uptrend on the horizon, investors are beginning to see this as a promising candidate for future growth.
Delhivery: Rebounding from All-Time Lows
Delhivery, India’s largest integrated logistics provider, has been the backbone of the country’s thriving e-commerce and industrial sectors. In March 2025, Delhivery’s stock touched an all-time low of ₹236, triggering concerns among investors. However, a technical formation in the form of a narrow range candle indicated that the selling pressure may be easing.
As the market recovered in April, Delhivery’s stock surged past ₹300, supported by the highest monthly trading volumes in years. This combination of rising price and volume is often a strong indicator of a potential bullish trend. For long-term investors, this may signal the beginning of a new growth phase.
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Vardhman Textiles: Renewed Bullish Momentum
Vardhman Textiles, a leading name in India’s textile industry, is another stock showing promising signs of recovery. Known for its presence in yarn, fabric, sewing threads, and garments, Vardhman Textiles has built a solid reputation for quality and innovation.
The stock’s recent performance is a textbook example of Dow Theory at play, with the stock resuming its higher-high, higher-low structure, signalling a return to a primary bullish trend. Following a long period of consolidation, the stock broke out to the upside, registering three-year high volumes. This breakout, fuelled by strong volumes, suggests that a structural shift may be underway, offering an attractive entry point for patient investors.
Conclusion
In the midst of market volatility, Tata Elxsi, Delhivery, and Vardhman Textiles stand out as potential long-term opportunities. These stocks have not only rebounded from their 52-week lows, but they are also showing tangible signs of accumulation, supported by rising volumes. This could signal the start of sustainable rallies, making them stocks to watch closely in the coming months. As always, market volatility presents opportunities for those who can differentiate between noise and actionable signals.
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