Two Beaten-Down Stocks to Watch as India’s Festive Season Approaches

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As India gears up for its crucial festive season, a period typically marked by a significant surge in consumer spending, investors are keenly eyeing opportunities in the market. While overall market sentiment remains generally positive, two particular stocks in the discretionary spending sector, PVR Inox and Swiggy, which have experienced substantial corrections over the past year, are now showing promising signs of a rebound. This potential turnaround makes them compelling candidates for observation as the festive cheer approaches.

India’s festive season, spanning from August through January, encompasses major celebrations like Ganesh Chaturthi, Navratri, Dussehra, Diwali, and Christmas, all of which historically drive robust consumer demand across various sectors. The current fiscal year, 2024-25, has already seen positive macroeconomic improvements, including an increased tax limit and eased liquidity by the Reserve Bank of India (RBI), which further bolsters consumer confidence and disposable incomes. This environment traditionally benefits industries reliant on discretionary spending, making the upcoming festive period a critical catalyst for growth.

PVR Inox, India’s largest multiplex chain, has faced considerable headwinds, seeing its stock price correct by 54% from ₹1,830 to ₹830 by April 2025 since its peak in 2024. However, historical data from the 2024 festive season (July-September) revealed a 30% rally for the stock, fueled by blockbuster movie releases and increased footfall. Recent technical analysis indicates a potential bullish reversal, with the stock breaking out from a short-term ascending triangle pattern at ₹1,000, trading above its 100-day moving average, and showing increased volumes. The Relative Strength Index (RSI) remaining above 60 further suggests a sustained bullish trend.

Similarly, Swiggy, a leading food delivery and quick commerce platform, saw its stock debut at ₹420 in November 2024, peaking at ₹617 before a sharp 52% correction to a low of ₹297 by May 2025. Since then, it has recovered by 38%, confirming a breakout from a bullish cup-and-handle pattern and entering a rising price channel. Swiggy is now trading above its 100-day Simple Moving Average (SMA), with its RSI above 55, signaling building momentum.

Both PVR Inox and Swiggy operate in sectors directly impacted by increased consumer activity during festivals. Their recent technical breakouts, coupled with the favorable economic outlook and the impending spending spree, present potentially attractive risk-reward profiles for investors looking to capitalize on the festive season’s economic uplift. While past performance is not indicative of future results, the current setups suggest these “beaten-down” stocks warrant close attention as India enters its most celebratory and commercially vibrant period.