IREDA – Support Zone in Focus During Wave 2

The rally from ₹50 → ₹310 unfolded in a clean 5-wave impulse, marking the completion of Wave 1.

Since then, the decline has been unfolding as a W–X–Y correction, currently progressing inside Wave 2. The ongoing drop is an unfinished Wave (a), projected toward the support cluster around ₹123–110. This area coincides with the 100% extension of the internal Wave 4 and prior structural support.

Once tested, a corrective Wave (b) bounce may follow, before one final dip in Wave (c) completes Wave Y of 2. A potential double bottom formation near ₹110 cannot be ruled out, which could set the stage for the powerful Wave 3 rally.

Bearish invalidation remains at ₹186.58.

Trade Plan
Bias: Bearish until Wave Y of 2 completes
Entry Zone: Relief rallies into resistances (watch for rejection signs)
Watch for: A corrective Wave (b) bounce, followed by one final leg down in Wave (c)
Stop-loss: Close above ₹186.58 (bearish invalidation)
Target: Support cluster at ₹123–110, with possible extension into a double bottom near ₹110

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.