You missed the IT slump, but the real opportunity lies in these nine stocks.
- IT weakness is sector‑wide, not a market‑wide crash – risk on equities still viable.
- Lupin, Axis Bank, JSW Steel and six peers show bullish chart patterns with clear entry‑exit levels.
- Historical rallies after IT pullbacks have produced 10‑15% upside in similar setups.
- Technical signals (RSI, EMA, Bollinger Bands) confirm momentum, while fundamentals remain solid.
- Each play includes a defined target, stop‑loss and rationale to fit both positional and intraday styles.
Lupin Stock Outlook: Pharma Rally Amidst IT Turbulence
After a sharp bounce from lower levels, Lupin (CMP ₹2,250.2) is forming a classic bullish continuation pattern. The price closed above its short‑term moving average, indicating that the 20‑day EMA is now acting as support.
Why it matters: Pharmaceutical demand in India remains insulated from IT cycles. In the last three months, pharma indices have outperformed the Nifty by 4‑5% while IT fell 6%.
Key levels: Buy near ₹2,170. If the stock holds above this, the next resistance is ₹2,400. A break below triggers an exit.
Sector trend: Pharma earnings are expanding at a CAGR of 12% (FY2022‑24), driven by higher domestic consumption and export growth. Competitors such as Sun Pharma and Cipla are also in consolidation phases, suggesting a broader sector‑wide rebound.
Historical context: Similar bullish continuations after IT dips in 2020 and 2022 produced ~13% gains over the next four weeks for Lupin.
Axis Bank Technical Outlook: Banking Resilience in a Range‑Bound Market
Axis Bank (CMP ₹1,387.6) is tracing a rising channel on the weekly chart, a higher‑high/higher‑low formation that signals a healthy uptrend. The Relative Strength Index (RSI) is perched above 55, pointing to continued buying pressure.
Entry point: Hold above ₹1,335. Target ₹1,480; stop‑loss at ₹1,335.
Industry insight: Private‑sector banks have been gaining market share from public banks, and the RBI’s recent policy easing on NPA classifications is boosting confidence. Tata Capital and HDFC Bank are showing parallel strength, reinforcing a sector‑wide bullish bias.
Technical note: The 20‑day EMA sits just below the current price, a classic “price‑above‑EMA” bullish signal used by many quant models.
JSW Steel Momentum: Metals Riding the Back‑End of the Cycle
JSW Steel (CMP ₹1,254.5) broke out of a brief consolidation, confirming a bullish continuation pattern. The stock stays above the ₹1,210 support, with upside potential to ₹1,340.
Steel demand is picking up as infrastructure projects resume post‑monsoon, and peers like Tata Steel and Steel Authority of India (SAIL) are also in the early stages of a price recovery.
Historically, steel stocks have rallied 8‑12% in the 10‑day window following a market‑wide IT correction, as capital allocation shifts to cyclical assets.
Colgate Palmolive India: Consumer Staples Defying the Downtrend
Since late January, Colgate (CMP ₹2,236.3) has drawn a higher‑high/higher‑low structure, a textbook Dow Theory pattern. A rounding‑bottom formation dating back to November 2025 signals a transition from bearish to bullish momentum.
Expanded Bollinger Bands show rising volatility, while prices hug the upper band—both bullish cues. Dips to ₹2,230 offer buying opportunities; the next resistance zones sit at ₹2,330 and ₹2,400, with strong support near ₹2,160.
Consumer staples tend to out‑perform during equity market consolidation, as cash‑rich households prioritize essential goods. Competitors like Hindustan Unilever and Dabur are also consolidating, suggesting sector‑wide strength.
Torrent Pharma: Record Highs Amidst Broad Market Weakness
Torrent Pharma (CMP ₹4,397.9) outpaced the Nifty with a >2% daily gain and set a fresh record high at ₹4,423. The stock has protected prior lows on a closing basis, a positive sign of underlying demand.
RSI is in overbought territory (>70), so prudent buying on dips around ₹4,330 is advised. Target ₹4,630; stop‑loss ₹4,180.
Pharma’s earnings guidance for FY2024‑25 has been upgraded by an average of 9% across the sector, giving Torrent a forward‑looking earnings tailwind.
Karur Vysya Bank: Small‑Cap Accumulation in a Narrow Range
Karur Vysya Bank (CMP ₹336) has been coiled in a ₹312‑₹329 range since Feb 9, a classic accumulation phase. A 3% breakout and a test of the Ichimoku Cloud line on Feb 16 signal rising momentum, confirmed by an ADX near 40.
Buy dips toward ₹315; targets ₹345 and ₹360; stop‑loss ₹315.
Small‑cap banks are benefitting from niche loan portfolios and lower NPA ratios compared to larger peers, making them attractive when larger banks face regulatory headwinds.
Graphite India: Momentum Building on Volume‑Driven Breakout
Graphite India (CMP ₹683.65) shattered a box pattern with high volume, converting former resistance into support. All major EMAs (20, 50, 100, 200‑day) lie below price, a rare alignment that signals a strong uptrend.
RSI at 58 leaves room for further upside. Buy on dips near ₹674; target ₹740; stop‑loss ₹655.
Global demand for graphite, especially for electric‑vehicle batteries, is forecast to grow 18% YoY, positioning the stock for long‑term tailwinds beyond the short‑term chart pattern.
Laurus Labs: Biotech Momentum Fueled by EMA Alignment
Laurus Labs (CMP ₹1,028.5) has broken a falling trendline and is now comfortably above its 20‑day EMA, with all longer‑term EMAs sloping upward. RSI around 54 adds confidence.
Buy on dips to ₹1,012; target ₹1,078; stop‑loss ₹985.
The biotech segment is benefitting from increased R&D spend and a pipeline of high‑margin products, mirroring the broader pharma rally.
Kalyan Jewellers: Riding a Downtrend with Tactical Shorts
Kalyan Jewellers (CMP ₹406.90) is entrenched in a lower‑high/lower‑low pattern, trading below all major EMAs—a textbook downtrend. RSI has rebounded from oversold zones, offering a short‑term sell‑the‑dip opportunity.
Sell near ₹416; target ₹396; stop‑loss ₹426.
The luxury jewellery sector is sensitive to discretionary spending, which has softened after the recent equity pullback, reinforcing the bearish bias.
Investor Playbook: Bull vs. Bear Cases for the Current Landscape
Bull case: The IT‑driven sell‑off is a sector‑specific rotation. Capital will flow into defensive, earnings‑rich stocks (pharma, consumer staples) and financially sound banks. The nine stocks highlighted are all positioned at key technical inflection points, offering asymmetric upside with defined risk.
Bear case: If broader macro‑risk (e.g., global rate hikes) intensifies, the Nifty could slip further, pulling even the strongest chart patterns into correction. In that scenario, tighten stop‑losses and favor cash or short‑duration debt.
Overall, the current market breadth (2,102 decliners vs. 835 advancers) suggests a short‑term consolidation window. Use the levels above to enter on dips, lock in profits at the stated targets, and adjust exposure as the market finds direction.