Nykaa: Multi-Signal Breakout Brewing with Strong Fundamentals 🚀

1️⃣ Elliott Wave Structure – Impulsive Trend Resumption From the weekly structure: The sharp fall from the IPO highs appears to have completed a 5-wave corrective decline (Wave A). The long base formed through 2023–24 looks like a Wave B accumulation phase. The recent strong rally from the ₹120–₹140 zone shows characteristics of a Wave 1 impulse. The pullbacks around the ₹210–₹230 zone suggest a Wave 2 retracement. The current upmove breaking higher looks like the start of Wave 3 – the strongest and fastest wave in an Elliott sequence. 📌 Implication: If this is indeed Wave 3, the projected move toward the ₹400+ zone aligns well with the measured projection shown on the chart. 2️⃣ MACD Divergence – Momentum Turning Strongly Bullish During the 2023 bottom, price made lower lows, but MACD made higher lows, indicating a bullish divergence. This divergence often marks the end of a downtrend and start of a new cycle. The MACD crossover visible in 2025 confirms that upside momentum has resumed. 📌 Implication: Momentum now supports continuation of the uptrend rather than reversal.