🎨 Tata Elxsi Ltd. – Falling Wedge with Bullish RSI Divergence

🔹 Price Action CMP: ₹5,407.50 (−2.97%) Tata Elxsi has been trading within a falling wedge pattern since June 2024, with price consistently making lower highs and lower lows. However, a bullish RSI divergence has formed near the lower wedge boundary, indicating potential trend exhaustion on the downside. 🔹 Technical Observations Pattern: Falling wedge — a typically bullish reversal structure. Trend: Short-term downtrend; mid-term base formation likely near ₹5,200 zone. Volume: Sudden rise in volume near recent swing low, hinting at accumulation interest. RSI: Displays bullish divergence — RSI forming higher lows while price makes lower lows, suggesting waning selling pressure. MACD (not shown): Expected to turn positive on follow-through above resistance line. 🔹 Key Levels Immediate Resistance: ₹5,600. Major Resistance: ₹5,800. Immediate Support: ₹5,200. Major Support: ₹5,000. 🔹 Strength & Risk ✅ Bullish divergence signals potential reversal setup. ✅ Wedge pattern nearing convergence point — breakout watch zone. ✅ Volume uptick near support confirms active demand. ❌ Price still below key trendline resistance; confirmation pending. ❌ Volatility risk remains high due to recent wide candles. 🔹 Outlook Tata Elxsi’s daily chart shows early signs of bottoming within a falling wedge, supported by a bullish RSI divergence. Sustained momentum above ₹5,600 would strengthen the case for a trend reversal, while holding above ₹5,200 keeps structure constructive. 📢 Disclaimer: This is educational technical analysis, not investment advice. 🧑‍💼 Rajneesh Sharma – SEBI Registered Research Analyst (INH000020332)