ASIAN PAINTS | Entering the Final Impulse?

Asian Paints continues to exhibit one of the cleanest long-term impulsive structures in the Indian markets. The current configuration suggests the stock may have completed a textbook Wave-4 correction and is positioning for a Wave-5 macro continuation, supported by structural demand, strong fundamentals, and a historically reliable price cycle.

📈 Technical Structure – Clear & Confirmed

• Wave 3 peaked precisely near the 3.618 Fibonacci extension, a classic signature of extended institutional momentum.
  
• Wave 4 formed a controlled, multi-year sideways correction, typical of a high-quality consolidation phase rather than a trend reversal.
  
• Price is now beginning to break out of corrective structure, printing a weekly BOS (break of structure)—a key signal for early Wave-5 initiation.
  
• The projected upside path aligns with the 2.618–3.618 macro Fib extension zone, placing the long-term target significantly above current prices.
  

🧠 Smart Money & Price Action Confluence

• Sequential liquidity sweeps beneath prior weekly lows indicate accumulation by informed participants.
  
• Strong demand imbalances have formed near the lower range of Wave-4, providing a solid institutional base.
  
• Price action shows a transition from re-accumulation → markup, confirming a shift in market character.
  
• The compression preceding the breakout is typical of SMC-style re-accumulation, where price coils before a sustained expansion leg.
  

📊 Fundamentals Supporting the Technical Bias

• Dominant market share and leadership in the paints sector create structural stability in earnings.
  
• Consistent double-digit revenue growth, margin resilience, and efficient capital allocation support long-term compounding.
  
• Expansion into adjacent categories (coatings, décor, waterproofing) fortifies multi-year demand cycles.
  
• High ROCE/ROE and predictable cash flows make Asian Paints fundamentally aligned with long-duration impulsive trends.
  

The company’s stable and scalable business model has historically aligned with its long-term bullish wave cycles—strengthening the probability of a sustained Wave-5.

🔮 Key Levels & Signals to Monitor
Sustained weekly closes above the Wave-4 range = continuation confirmation.
Pullbacks into reclaimed demand zones may present optimal re-entry opportunities.
Volume expansion on breakouts will provide validation of institutional participation.

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⚠️ Disclaimer
This analysis is educational and not financial advice. Always conduct independent research and manage risk appropriately.