IndusInd Bank: Cup Formed, Handle Consolidating

IndusInd Bank is forming a classic Cup & Handle continuation pattern, which aligns cleanly with a major-degree Elliott Wave structure, strengthening the bullish case.

The prior advance established the primary bullish trend (Wave 1 / A). The subsequent decline unfolded as a complex Wave 2 / B correction, expressed visually as the cup — a rounded, time-consuming base formed through a W–X–Y corrective structure. This phase allowed price to correct without breaking the broader trend, signalling accumulation rather than distribution.

The recovery from the base completed the cup and transitioned into the handle, which is developing as a shallow consolidation above key Fibonacci supports. From an Elliott Wave perspective, this handle reflects a pause before expansion, not a reversal, keeping the larger bullish structure intact.

With the handle holding above the 0.618–0.50 Fibonacci retracement zone (₹828.90–₹809.35), the setup favors a major-degree Wave 3 / C advance, typically the strongest and most impulsive phase of a trend.

Structure & Bias
Pattern: Cup & Handle (Continuation)
Elliott Wave alignment:

• Wave 1 / A: Prior impulsive advance
  
• Wave 2 / B: Complex correction forming the cup (W–X–Y)
  
• Wave 3 / C: Expected expansion leg post-breakout
  

Bias: Bullish continuation

Entry Strategy
Early Entry (Aggressive):
Channel breakout within the handle, followed by a successful retest — offers early exposure with higher volatility risk.

Safer Entry (Conservative):
Breakout above the major resistance near ₹892, followed by a retest — confirmation-based entry aligned with Wave 3 / C acceleration.

Invalidation
Sustained trade below ₹809 invalidates the Cup & Handle thesis and weakens the Wave 3 / C outlook.

Bottom line:
This is a Cup & Handle powered by Elliott Wave structure. As long as price holds above key Fibonacci support, the path of least resistance remains higher.

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.