TATA CONSUMER — The Calm Before Wave 5

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TATA Consumer has completed a textbook corrective structure from its recent high of 1180.50. The entire correction unfolded as an ABC zigzag, neatly contained within a falling channel. Within wave C of this zigzag, price action formed an ending diagonal, with wave 4 overlapping wave 1—confirming the diagonal structure and marking the completion of higher-degree wave 4 at 1059.

This 1059 level also becomes the key invalidation point for the current bullish outlook.

Following this, price broke out impulsively to 1150, forming what appears to be wave 1 of the next leg higher—wave 5. The current pullback is likely wave 2 of 5, and as per Elliott Wave rules, it must remain above 1059 to keep this count valid.

Wave 5 targets are projected using a 100% extension of wave 1 from the end of wave 4, which gives a potential upside zone around 1250.90. This forms the ideal target range if the wave count unfolds as expected. The targets could as well extend to 1.618x of wave 1.

From a higher-degree perspective, since wave 4 overlaps with wave 1 (at 1075), the entire advance is best seen as a leading diagonal. This pattern often appears as the first wave of a new impulse, reinforcing the view that one more leg higher is likely to complete wave 5 and mark the end of wave 1 or A of a larger degree.

RSI had peaked near 70 during subwave 1 of 5 and has now cooled to the 40s, which aligns well with a wave 2 retracement. Earlier, RSI had dipped closer to oversold levels at the Wave 4 low, adding further support to the case for a completed correction.

Conclusion:
We are in prime low-risk, high-reward territory.
Setup is textbook Elliott bullish continuation — tight invalidation and defined structure.

Disclaimer:
This analysis is for educational purposes only and not investment advice. Always do your own research before making trading decisions.

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Nota

While the correction has been labeled as an abc zigzag (with wave C showing a clear 5-wave structure), an alternate possibility of a triangle was also considered. If price decisively breaks below 1059, the current structure may instead be part of a larger contracting triangle from the 1180.50 high. In that case, wave 5 could still unfold after the triangle completes. For now, the zigzag count remains preferred due to the internal wave clarity.