S&P BSE SENSEX NEXT 50 (India) Wave technical analysis [Video]

S&P BSE SENSEX NEXT 50 Wave technical analysis

Function: Counter Trend.

Mode: Corrective.

Structure: Orange Wave 2.

Position: Navy Blue Wave 3.

Direction next higher degrees: Orange Wave 3.

Details: Orange wave 1 appears complete; orange wave 2 is currently developing.

Wave cancel/invalid level: 70146.

The daily chart for S&P BSE SENSEX NEXT 50 suggests a counter-trend correction unfolding within a broader bullish structure. After completing orange wave 1, the index has transitioned into the orange wave 2 phase as part of the larger navy blue wave 3 uptrend. This setup reflects a short-term pullback before a likely continuation of the upward trend.

Orange wave 2 is typically a retracement phase, often falling between 38% to 61% of wave 1’s move. These corrections usually take the form of common structures like zigzags or flats, with overlapping price action and reduced momentum. This setup aligns with characteristics observed in corrective waves. On the daily chart, this suggests a medium-term pause in the overall bullish movement.

The next likely step is orange wave 3 upward, expected to begin after wave 2 completes. This wave may turn out to be the most powerful segment of the sequence, potentially moving beyond the top of wave 1. The key level to monitor is 70146—a close below it would invalidate the current bullish outlook.

Traders should keep an eye on signals that wave 2 is nearing completion, such as bullish reversal candlesticks, oversold momentum readings, and signs of accumulation in volume. This correction phase could offer strong entry opportunities for those preparing for the upcoming wave 3 rally. Technical indicators will assist in confirming the new impulse.

This period of correction is considered a healthy phase within the broader uptrend, giving traders time to strategize. Observing how price behaves around key Fibonacci levels will be essential for identifying entry points as the trend transitions from wave 2 into wave 3.

S&P BSE SENSEX NEXT 50 Wave technical analysis

Function: Bullish Trend.

Mode: Impulsive.

Structure: Navy Blue Wave 3.

Position: Gray Wave 1.

Direction next lower degrees: Navy Blue Wave 4.

Details: Navy blue wave 2 is likely completed; navy blue wave 3 is active.

Wave cancel/invalid level: 70146.

The weekly chart for S&P BSE SENSEX NEXT 50 signals a strong bullish trend underway within an impulsive Elliott Wave structure. The market has completed the navy blue wave 2 correction and now progresses into navy blue wave 3, all within the broader gray wave 1 context. This marks the entry into the most dynamic portion of the upward trend, generally defined by powerful momentum and notable price advances.

Wave 3 typically delivers the strongest movement in Elliott Wave formations. With wave 2 concluded, wave 3 sets in as the core rally phase, often surpassing wave 1 in size. This ongoing structure indicates a continuation of the bullish move, gaining strength before encountering the next correction.

The weekly view is essential for understanding the significance of this movement. The fact that it forms part of gray wave 1 on a higher degree supports the idea that this could be one phase of a larger bullish pattern extending across higher timeframes. A vital level to track remains 70146—any move below this would invalidate the current analysis and call for a review of the wave count.

Investors and traders should watch for strong trending behavior in wave 3, such as increasing momentum, volume growth, and consistent upward movement. Staying with the trend during this phase is typically advisable. Chart patterns and indicators will help validate the move as it unfolds.

Following wave 3, the expected correction in navy blue wave 4 will likely present a pause before the next bullish advance. For now, wave 3 offers favorable trading opportunities, representing a prime moment for trend-following strategies.

Technical analyst: Malik Awais.

S&P BSE SENSEX NEXT 50 Wave technical analysis [Video]