PIIND : at Interesting Risk and Reward

1. Key Analysis and Levels

1. Wave 4 (Primary) Zone (₹3981-₹4295):
   
   The price is currently in the Wave 4 corrective zone, as per Elliott Wave Theory.
   This zone is critical for determining whether the upward trend will resume (Wave 5) or break down further.
   
2. Wave C (Minor) Completion Zone:
   
   Represents the lower boundary of the current corrective structure.
   A bullish reversal is possible here if demand sustains.
   
3. Target at Wave 5 (₹4922-₹5041):
   
   If the upward trend resumes, this is the extended retracement of Wave 3, and the logical profit zone for bulls.
   
4. Stop Loss Level (₹3980):
   
   Positioned just below the Wave 4 corrective zone to manage downside risk.
   

2. Trade Setup

1. A. Long Trade Setup:Why Long?
   
   The price is at a critical support area within Wave 4, where buyers might step in.
   Potential for continuation of the uptrend to form Wave 5.
   Entry: Between ₹4000-₹4100, after observing bullish reversal signals (e.g., bullish candlesticks, volume surge).
   
   Stop Loss: ₹3980, slightly below the Wave C completion zone.
   
   Targets:
   
   ₹4700: Intermediate target at prior swing resistance.
   ₹4922-₹5041: Final target at Wave 5 extension.
   
2. B. Short Trade Setup (If Support Fails):Why Short?
   
   A breakdown below ₹3980 would invalidate the Wave 4 support zone, signaling further downside.
   Bearish continuation could lead to lower Fibonacci levels or prior demand zones.
   Entry: Below ₹3980 after confirmation of breakdown with volume.
   
   Targets:
   
   ₹3700: Immediate support level.
   ₹3250-₹3300: Major demand zone from previous Wave 2.
   Stop Loss: ₹4080 to limit risk on false breakdowns.
   

3. Explanation of Analysis

1. Wave 4 Correction:
   
   Wave 4 is typically a corrective phase after a strong Wave 3 impulse. It often tests Fibonacci retracement zones (₹3981-₹4295).
   
2. Wave 5 Target:
   
   If the uptrend resumes, Wave 5 is expected to extend to 113%-127% of Wave 3’s range (₹4922-₹5041).
   
3. Bearish Scenario:
   
   Failure to hold Wave 4 corrective support would signal deeper correction, potentially targeting previous Wave 2 levels.
   

4. Confirmation Signals

1. For Long Entry:
   
   Price stability within ₹3981-₹4295 and bullish reversal patterns like hammer candles or bullish divergence (e.g., RSI).
   Break above ₹4300 confirms Wave 4 completion.
   
2. For Short Entry:
   
   Decisive breakdown below ₹3980 with strong bearish momentum (e.g., large red candle, volume spike).
   

5. Risk Management

1. []Risk limited to 1-2% of trading capital per trade.
   []Use partial profit booking at intermediate targets (e.g., ₹4700) and move stop-loss to breakeven.
   

Why This Plan Works

This strategy leverages Elliott Wave Theory to anticipate high-probability reversal or continuation scenarios. It accounts for both bullish and bearish outcomes, ensuring a structured approach to risk and reward. The key levels and confirmation signals allow for timely and informed decision-making.