Range-Bound Accumulation Near Key AVWAP Zone! 📊⚙️

The chart of Sonata Software highlights a tight accumulation range between ₹340 and ₹405 — a classic setup where institutional players often build positions before a directional breakout. 🔹 Elliott Wave Structure: The ongoing structure appears to be in a Wave 2 corrective phase, forming a sideways flat pattern after a strong impulsive rise in Wave 1. Once the upper resistance at ₹405–₹410 is cleared, a new Wave 3 rally could initiate — typically the most powerful wave in Elliott structure. 🔹 MACD Divergence: Despite price fluctuations within the range, MACD shows higher lows, reflecting bullish momentum divergence and declining selling pressure — a sign that downside energy is exhausted and accumulation is strengthening. 🔹 AVWAP Resistance: The Anchored VWAP from the prior swing high is acting as a key dynamic barrier near ₹403. Sustaining above this level on volume expansion would confirm renewed bullish participation and potential trend reversal. 🔹 Fundamental Strength: Sonata continues to show steady revenue growth, high return ratios (ROCE > 25%), and a healthy cash position — fundamentals that complement a technically constructive setup. Its consistent dividend payouts and efficient capital allocation add confidence to long-term investors. 📊 Summary: Watch for a decisive close above ₹405–₹410 with strong volumes to confirm a breakout from the multi-week range. Post-breakout, targets could open toward ₹440–₹460, while ₹345 remains a solid range base support.