Paper stocks are making a comeback. Keep these two stocks on your radar.

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Subscribe to enjoy similar stories. The Indian stock market has been in a correction phase since September. Despite this, a few mid-cap and small-cap stocks have managed to shine, proving to be strong and reliable picks for investors and traders.

Look at the trend: While the benchmark Nifty 50 index has declined by about 7% since scaling a record high in late September, JK Paper Ltd has outperformed with a 4.71% gain in that period, and Andhra Paper Ltd has held steady, showing no major drop despite the market correction. The Nifty 50 seems to have found a potential bottom and could soon retest its recent high. This makes it an appropriate time to focus on stocks that stayed strong during the correction phase—such stocks often lead the way when the market bounces back.

The Nifty 50 has formed an inverted head-and-shoulder pattern, a classic bullish reversal signal. This indicates that the correction phase might be over and a fresh uptrend could start. This bullish setup is reflected in many stocks.

Among those, Profit Pulse has identified two paper stocks that look particularly strong. These stocks have previously outperformed the broader market and could be early movers in the next rally. Also read | MobiKwik’s IPO: Is this the start of something bigger? On the weekly chart, JK Paper broke out in July after consolidating for two years, moving from ₹440 per share to ₹640.

However, it couldn’t hold those higher levels and retraced to its support zone. At its current level, the stock has strong support from: The daily chart's correction from ₹638 per share to ₹390 created a falling trendline, which usually signals a bearish continuation. However, the JK Paper stock showed resilience: This chart setup indicates a strong