Mean Reversion Setup on a Market Leader: Structure Aligns with Strength

lliott Wave Structure The broader uptrend from the April lows appears to have completed a 5-wave impulsive structure, topping out in December. The ongoing decline is shaping into an ABC corrective phase: Wave A: Initial breakdown from the ₹1,600 zone Wave B: Brief consolidation and lower high near ₹1,550 Wave C: Current sharp leg down, approaching the prior consolidation floor Importantly, the current price zone overlaps with a higher-degree Wave 4 support, a classic region where corrections often terminate in strong primary trends. 🔹 MACD Observation MACD has already unwound a large part of its prior bullish momentum. Despite the sharp price drop, momentum is not accelerating lower, hinting at bearish exhaustion. This sets the groundwork for a potential bullish divergence if price holds above the marked support and stabilizes. Fundamental Strength The company remains fundamentally robust: Strong cash flows across energy, retail, and digital segments Consistently improving return ratios driven by operating leverage Balance sheet strength supporting long-term expansion There is no visible fundamental trigger for trend deterioration, reinforcing that the move is technical and sentiment-driven. 📌 Big Picture Takeaway This setup represents a corrective pullback within a larger bullish framework. With Elliott Wave support, AVWAP alignment, and slowing downside momentum, the ₹1,360 zone becomes a key inflection area where price behavior will reveal intent.