Structure
The rally from ₹849 to ₹1,102.50 unfolded as a clean 5-wave impulse, clearly establishing the move as directional and non-corrective.
Post the impulse high, price transitioned into a corrective phase, drifting lower within a well-defined descending channel. From an Elliott Wave perspective, the decline fits well into a W–X–Y double zigzag structure, with the current leg likely unfolding as Wave Y — suggesting a mature correction rather than trend damage.
Liquidity
Crucially, Wave Y is now approaching an unfilled gap that aligns closely with the 0.786 Fibonacci retracement of the prior impulse. This convergence marks a potential liquidity zone, where downside momentum may begin to exhaust and responsive buying interest could emerge.
This area warrants close observation for bullish reversal candlestick patterns and/or bullish divergence on RSI, which would strengthen the case for a constructive reaction from this zone.
Catalysts
Adding further context, earnings are scheduled for Feb 3rd, with the Union Budget on Feb 1st — two near-term events that could act as timing catalysts. A positive price response around this liquidity pocket could help transition the structure from corrective to impulsive, setting up a high-quality trade opportunity with a favorable reward-to-risk profile.
Risk Management
Importantly, bullish invalidation lies below ₹849. As long as this level holds, the impulsive base remains intact, keeping risk clearly defined and asymmetric.
Conclusion
This is a high-context, high-clarity zone where structure is mature, liquidity is in focus, and catalysts are lined up. Upside confirmation from here could unlock a meaningful move, making patience and disciplined observation key.
Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
The rally from ₹849 to ₹1,102.50 unfolded as a clean 5-wave impulse, clearly establishing the move as directional and non-corrective.
Post the impulse high, price transitioned into a corrective phase, drifting lower within a well-defined descending channel. From an Elliott Wave perspective, the decline fits well into a W–X–Y double zigzag structure, with the current leg likely unfolding as Wave Y — suggesting a mature correction rather than trend damage.
Liquidity
Crucially, Wave Y is now approaching an unfilled gap that aligns closely with the 0.786 Fibonacci retracement of the prior impulse. This convergence marks a potential liquidity zone, where downside momentum may begin to exhaust and responsive buying interest could emerge.
This area warrants close observation for bullish reversal candlestick patterns and/or bullish divergence on RSI, which would strengthen the case for a constructive reaction from this zone.
Catalysts
Adding further context, earnings are scheduled for Feb 3rd, with the Union Budget on Feb 1st — two near-term events that could act as timing catalysts. A positive price response around this liquidity pocket could help transition the structure from corrective to impulsive, setting up a high-quality trade opportunity with a favorable reward-to-risk profile.
Risk Management
Importantly, bullish invalidation lies below ₹849. As long as this level holds, the impulsive base remains intact, keeping risk clearly defined and asymmetric.
Conclusion
This is a high-context, high-clarity zone where structure is mature, liquidity is in focus, and catalysts are lined up. Upside confirmation from here could unlock a meaningful move, making patience and disciplined observation key.
Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
WaveXplorer | Elliott Wave insights
📊 X profile: @veerappa89
📊 X profile: @veerappa89
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.