Long-Term Base Completion Signals a New Impulsive Phase – Mphasis

echnical Structure (Elliott Wave Perspective) On the monthly timeframe, Mphasis completed a strong impulsive Wave 1–3 rally into the 2021 peak, followed by a deep but orderly Wave 4 correction. This correction unfolded as a rounded, time-consuming base, marked by overlapping price action and diminishing volatility — a classic accumulation characteristic. The recent higher lows and push back toward the prior resistance zone suggest the stock is transitioning into Wave 5 / a fresh primary impulse, rather than remaining in a corrective structure. Momentum Insight (MACD Behavior) During the prolonged correction, downside momentum steadily weakened. Even as price revisited lower levels, momentum failed to expand correspondingly, indicating a structural bullish divergence on MACD over the broader cycle. The recent expansion phase implies momentum is now realigning with price, often seen at the start of a new long-term uptrend. Key Levels & Price Projection Structural Support: 2,450–2,600 (base higher-low zone) Major Resistance: 3,200–3,250 (long-term supply) Upside Potential: A decisive breakout and acceptance above resistance opens the path toward the 3,600–3,800 region, aligning with wave extension and prior price discovery zones. Fundamental Strength (Why the Base Matters) Mphasis benefits from: Consistently healthy ROCE, reflecting disciplined capital allocation Stable cash flows driven by long-term client relationships A resilient business model that supports sustained compounding rather than cyclical spikes Such fundamentals often manifest technically as long consolidations followed by multi-year expansion phases, rather than short-lived rallies.