IIFL Finance Elliott Wave analysis: Wave (2) correction nears completion, bullish rally ahead
|IIFL Finance (NSE: IIFL) shows a corrective Elliott Wave pattern (2) with key support at ₹370.10. A potential bullish wave (3) rally may follow soon.
IIFL Finance Ltd (NSE: IIFL) continues to follow a well-defined Elliott Wave structure, suggesting the stock is undergoing a corrective phase before resuming its larger bullish trend. After completing wave (1) at the recent high, the stock is currently in wave (2), which is unfolding as a double three corrective pattern (W)-(X)-(Y).
The initial leg lower, wave W, has already completed, followed by a smaller recovery in wave X. The ongoing decline appears to be part of wave Y, which could ideally extend toward the 1.0 Fibonacci extension level around ₹370.10, marking equal legs before a potential reversal.
Despite this correction, the bigger picture stays bullish. The right-side tag shows a higher probability for upward movement. We do not recommend selling during this pullback. Instead, traders should wait for wave (2) to complete and prepare for a potential wave (3) rally. This next bullish wave can lead to new highs if the structure holds.
The invalidation level for this outlook is ₹279.35. If the price stays above this point, the current decline remains corrective. Pullbacks can then create buying opportunities once signs of a reversal appear.
Summary:
In summary, IIFL Finance is likely in the final stages of its wave (2) correction within a broader bullish cycle. Traders and investors should stay patient, avoid shorting, and prepare for a possible continuation higher once the corrective structure completes.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.