Deepak Fertilisers: Major Weekly Breakout Signals Start of a New Bullish Cycle

$DEEPAKFERT Deepak Fertilisers has delivered a powerful weekly breakout above the ₹1,500 resistance zone, completing a large multi-month Cup & Handle formation. From an Elliott Wave perspective, the decline from the 2025 highs appears to have completed a corrective Wave 2 structure near the ₹900-950 zone. The strong recovery and breakout above ₹1,500 indicate that the stock may now be entering Wave 3, which is typically the strongest and longest phase of an Elliott Wave cycle. The sharp acceleration in price and expansion in candle ranges support this bullish interpretation. Momentum characteristics also remain constructive. The stock has formed a sequence of higher highs and higher lows from the bottom, indicating a healthy trend structure. Such price behaviour is often seen during the early stages of large bullish cycles before broader market participation enters the stock. Fundamentally, Deepak Fertilisers stands out due to its diversified presence across fertilizers, industrial chemicals, and mining chemicals. The company has historically demonstrated strong operational execution, healthy return ratios, and the ability to benefit from industrial and agricultural demand cycles. Consistent earnings growth and efficient capital deployment make it a fundamentally resilient business capable of supporting long-term value creation. Technical Outlook Pattern: Weekly Cup & Handle Breakout Breakout Zone: ₹1,500-1,520 Immediate Support: ₹1,500 AVWAP Support Zone: ₹1,250-1,300 Elliott Wave View: Potential start of Wave 3 expansion Potential Targets: ₹1,800 → ₹2,000+ Invalidation Level: Sustained weekly close below ₹1,300