IndusInd Bank Elliott Wave Analysis: Wave V Rally Could Target 3264

After completing wave ((1)) of wave V, IndusInd Bank is correcting in wave ((2)), which could set the stage for the next strong bullish impulse toward higher levels.

The long-term chart of IndusInd Bank indicates a strong bullish structure from an Elliott Wave perspective. The stock appears to have completed a powerful five-wave impulse within red wave III of cycle degree, highlighting the strength of the long-term uptrend. Within this advance, wave ((1)) extended, which is typical in strong trending markets.

After completing the major impulse wave III, the stock entered a sharp and deep corrective phase in wave IV. This correction retraced close to 50% of the prior wave III advance, bottoming near 227.47 before buyers stepped back in. Such a retracement level is typical for fourth waves following an extended third wave and often sets the stage for the final bullish leg in the cycle.

Wave V Progress and Current Market Structure

After completing wave IV, IndusInd Bank started the next bullish phase in wave V. Within this advance, the stock already formed five waves higher in black wave ((1)). This structure confirms the beginning of a new impulsive cycle.The market is now pulling back to correct this advance in wave ((2)). A closer look at the internal structure shows that wave (A) ended a clear five-wave decline near the 606 level. After that decline, the stock started bouncing in wave (B). The current bounce appears mature and may end soon below the peak of wave ((1)).

Once wave (B) finishes, the market could start wave (C). This move would complete a three-swing correction within wave ((2)). We expect this pullback to stay above the low of wave IV. Holding above that level will keep the broader bullish structure intact and support the long-term Elliott Wave outlook.

Alternate Scenario: Early Start of Wave ((3))

However, if IndusInd Bank breaks above the wave ((1)) high, it would suggest the pullback in wave ((2)) has already ended. In that case, the market may have started the powerful wave ((3)) rally earlier than expected.

Long-Term Target Remains Strong

From a broader perspective, the next major upside target lies near 3264, which corresponds to the 1.236 external retracement of wave IV. This level also aligns with the equal-legs projection of wave I, a common target when wave III is extended.

Overall, the long-term Elliott Wave outlook for IndusInd Bank remains strongly bullish, and the current pullback is viewed as a potential opportunity before the next major upside phase begins.

Source: https://elliottwave-forecast.c...