Range Breakout with Trend Alignment – Momentum Expansion Likely

The chart reflects a strong breakout above the ₹3,750–₹3,800 consolidation zone, signaling continuation of the prevailing uptrend after a healthy pause. From an Elliott Wave perspective, the prior sharp rally can be considered Wave 3, followed by a sideways Wave 4 consolidation between ₹3,300–₹3,800. The recent breakout candle suggests the initiation of Wave 5, which typically delivers the final leg of the trend with momentum, especially when supported by broader strength. On the momentum front, the breakout is likely supported by a bullish MACD crossover after a period of consolidation. The narrowing price action followed by expansion indicates volatility contraction turning into expansion — a classic sign of trend continuation. Looking at AVWAP, if anchored from the recent swing low (around February), price has consistently respected AVWAP as support and is now moving away from it post-breakout, confirming strong buyer control. The ₹3,500–₹3,550 zone now acts as a key demand area. Additionally, the price is trading above key moving averages, all of which are sloping upward — reinforcing the strength of the ongoing trend. From a fundamental standpoint: Strong presence in precision engineering and defense/space sectors Robust order book with long-term visibility High ROCE and consistent earnings growth support premium valuation