Power Grid – A Flag Within a Wave

After completing a clean five-wave rally from ₹247.30 to ₹322, Power Grid has spent months in a controlled drift lower — a textbook corrective channel, likely forming Wave 2/B of the next major leg.

Price now sits near the 0.786 retracement (₹263 zone), showing early signs of exhaustion. A “Bullish hammer?” candle has appeared — not textbook-perfect, but hinting that buyers are starting to show up near prior demand.

The RSI divergence adds another layer — price made new lows, RSI didn’t. That’s often how momentum bottoms quietly form before a sharp reversal.
Still, price hasn’t kissed the lower boundary of the channel, which has already acted as support thrice. So, another quick dip can’t be ruled out before a stronger move unfolds.

A breakout above the upper channel would confirm the end of this correction and signal the start of Wave 3/C, with ₹322 as the first key level to reclaim.

Until then, patience is key — the structure remains healthy, the confluence is strong, and the risk is clearly defined.

Structure summary:

• Wave 1/A: ₹247.30 → ₹322
  
• Wave 2/B: Descending flag-type correction
  
• Key fibs: 0.618 = ₹275.85, 0.786 = ₹263.30
  
• RSI: Bullish divergence emerging
  
• Trigger: Breakout above channel
  
• Invalidation: Below ₹247
  

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.