5 Bullish stocks for market reversal in 2025
The journey of investing is filled with cycles—ups and downs that test the patience and conviction of every investor; the one witnessed in the last couple of quarters. During this period, fear overshadowed optimism, and many portfolios saw a significant decline. However, as history has shown time and again, every correction eventually gives way to a new rally. March has brought a fresh wave of positivity to Dalal Street, with the Nifty50 gaining 6% and the broader Nifty500 surging by 7%.
We have developed a strategy for stock selection on a quarterly chart basis.
The Strategy Criteria
This structured approach helps filter stocks that demonstrate early signs of leadership in a recovering market. The criteria for selecting stocks include:
- Current Quarter’s High > Previous Quarter’s High – This indicates price strength and an ability to break previous resistance levels.
- Current Quarter’s Close > Previous Quarter’s Close – A sign of sustained bullish momentum, ensuring that the stock is not just experiencing a temporary spike.
- Current Quarter’s Volume > Previous Quarter’s Volume – Increased volume suggests stronger investor participation and institutional interest, reinforcing the stock’s movement.
- RSI > 60 – A Relative Strength Index (RSI) above 60 signifies strong momentum and an ongoing uptrend.
Using this systematic approach, we conducted a scan of the Nifty50 stocks and identified five companies that align perfectly with our strategy.
The Five Stocks Potentially Leading the Market Reversal
The following stocks have emerged as potential leaders and strong buying interest as the market rebounds:
- Bajaj Finance – A strong player in the financial sector, Bajaj Finance has consistently delivered robust growth and regained momentum following the correction.
2. Bajaj Finserv – With a diversified business model, Bajaj Finserv continues to demonstrate strength, driven by increasing volumes and a robust quarterly close.
3. Bharti Airtel – As a market leader in the telecom sector, Airtel benefits from stable cash flows and growth in digital services, making it a promising bet.
4. Eicher Motors – The iconic Royal Enfield manufacturer has made a strong comeback, indicating renewed demand and investor confidence in its long-term prospects.
5. Kotak Bank – A key player in the banking sector, Kotak Bank has shown resilience, backed by strong fundamentals and increasing volumes.
Investing during a market reversal requires a strategic approach that filters out the noise and focuses on stocks that have the potential to lead the next leg of the market rally. With the worst of the correction may be behind us, optimism is back on Dalal Street. Investors who strategically position themselves now could be well-rewarded as the next bull run unfolds. The key is to stay focused, trust the process, and embrace the opportunities that market reversals bring.
Disclaimer:
Note: We have relied on data from http://www.definedgesecurities.com throughout this article. Only in cases where the data was unavailable have we used an alternate but widely used and accepted source of information.
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.
Brijesh Bhatia has over 18 years of experience in India’s financial markets as a trader and technical analyst. He has worked with UTI, Asit C Mehta, and Edelweiss Securities. Presently, he is an analyst at Definedge.
Disclosure: The writer and his dependents do not hold the Stocks discussed in this article. However, clients of Definedge may or may not own these securities.
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