Chennai Petroleum Corporation Limited (NSE: CHENNPETRO) Elliott Wave analysis: Bullish cycle poised

Wave (III) set to unfold as Chennai petroleum targets new highs in the next bullish cycle

Chennai Petroleum Corporation Ltd (NSE: CHENNPETRO) shows a strong long-term bullish setup on its monthly Elliott Wave chart. The price completed a clear five-wave advance, forming wave (I), followed by a deep correction in wave (II). This correction ended near ₹434.10, which now acts as the key support and invalidation level for the bullish view.

As long as the stock stays above this level, the broader trend remains positive. The pattern suggests that CHENNPETRO has already started a new bullish phase. The right side of the chart continues to point upward, confirming buyers are in control.

After wave (II) finished, the stock began moving higher again, marking the start of wave (III). We’re currently in the early stages of this wave, with initial movements beginning to unfold. The expectation is for a retest of the recent high in wave I, following a corrective pullback in wave II that may develop in 3, 7, or 11 swings. This setup could present a fresh opportunity to enter long positions in anticipation of further upside.

According to Fibonacci projections, wave I can extend toward the ₹1,200–₹1,300 price area, offering significant upside from current levels. Looking further ahead, the long-term targets for wave (III) are set around ₹1,690 and ₹2,460, corresponding to the 100% and 161.8% Fibonacci extensions of wave (I), respectively.

Technical and fundamental support

From a broader view, Chennai Petroleum is benefiting from higher refining margins and increasing demand for petroleum products in India. The company’s strong operational base and strategic importance in the energy sector support this long-term bullish outlook.

Technically, the Elliott Wave count aligns with these improving fundamentals. As a result, the trend remains favorable for buyers, and we do not recommend selling while the right side stays positive.

Conclusion

In summary, Chennai Petroleum Corporation Ltd (NSE: CHENNPETRO) maintains a strong Elliott Wave structure. Wave (II) has completed at ₹434.10, confirming a solid base for further upside. The market is likely developing wave I of (III), which may take the price toward new highs above ₹1,200 in the next few months.