Birlasoft: Running or Expanded Flat Correction [3-3-5] in Play

After completing a strong rally to ₹861.85(identified as Wave B), Birlasoft has been locked in a corrective structure that is shaping up as a [3-3-5] flat. At this stage, it remains open whether this develops as a Running Flat or an Expanded Flat.

The Structure So Far

• Wave A bottomed at ₹251.90, setting the first leg of the correction.
  
• Wave B extended sharply to ₹861.85, exceeding the prior Wave 3 peak.
  
• Wave C has unfolded in five waves, with Wave (iii) bottoming at ₹331 — exactly the 100% Fibonacci extension of Wave (i) projected from Wave (ii).
  

Key Levels to Watch

• ₹251.90 → If price holds above, Wave 4 qualifies as a Running Flat.
  If broken below, Wave 4 shifts into an Expanded Flat.
  
• ₹452 → The Wave (iv) high acts as the bearish invalidation level.
  

RSI Context
The RSI remains weak, Wave 4 often ends with bullish divergence in its fifth wave, which could trigger the start of the next impulse — Wave 5.

Moving Averages
A weekly 50/200 MA crossover confirms broader weakness, but such crossovers often come late in the cycle, which might suggest that Wave 4 may be nearing exhaustion.

Outlook
Birlasoft’s correction is in its final stages. A bullish divergence on RSI, combined with price stability above ₹251.90, could set the stage for Wave 5 rally to new highs. Conversely, a break below this critical level confirms an Expanded Flat and delays the bullish sequence.

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.