Wave 3 Breakout in TD Power Systems — Multi-Timeframe Strength Building Up!

Elliott Wave Perspective TD Power Systems appears to be unfolding a classic 5-wave impulsive structure on the monthly timeframe. Wave 1 initiated from the ₹290 zone and peaked near ₹756. Wave 2 retraced toward the 0.5 Fibonacci level (~₹520), showing healthy correction and accumulation. The current move marks the onset of Wave 3, typically the most powerful and extended wave. Based on Fibonacci projections, the 1.618 extension targets ₹1,040, indicating strong upside potential once short-term consolidation completes. Volume & Momentum Confirmation A significant surge in monthly volume (36M shares) during the recent breakout candle confirms institutional participation. Momentum oscillators are in a strong uptrend zone, with no visible bearish divergence, supporting continuation toward higher targets. AVWAP & Dynamic Support The Anchored VWAP from the prior swing low near ₹290 is acting as a dynamic trend base. Price has remained consistently above this line, reinforcing long-term bullish control. Any retest toward ₹625–₹650 (around AVWAP cluster) could serve as an ideal Wave 4 accumulation zone. Fundamental Edge ROCE: ~25%+ — reflecting efficient capital utilization Debt-to-Equity: Below 0.2 — a strong balance sheet Earnings Growth: Consistent double-digit CAGR over 3 years Sectoral Tailwinds: Rising industrial capex and power infra expansion driving order inflows Outlook With a clean Elliott Wave setup, robust volumes, and strong financials, TD Power Systems remains a technically and fundamentally aligned breakout candidate. Projected Path: ₹775 → ₹900 (short-term) → ₹1,040 (Wave 3 target) → post Wave 4 pullback → ₹1,200+ (Wave 5 projection).