Wave III ending, wave IV pullback ahead

Momentum is nearing exhaustion in Wave III, setting up a corrective pullback that could create the next high-probability buying opportunity for the Wave V advance.

CCL Products (India) Limited continues to follow a strong bullish Elliott Wave structure on the monthly chart. The long-term trend began from the major base near the 130 region, where the stock formed a cycle low and started a new impulsive advance. Since then, price action has developed in a clear five-wave sequence, confirming institutional participation and sustained buying pressure.

At present, the stock is trading in Wave III of the larger bullish cycle. Inside this wave, the subdivisions also show a completed series of smaller waves (1), (2), (3), (4), and the final stretch of (5). The rally has displayed classic third-wave characteristics — sharp momentum, shallow pullbacks, and consistent higher highs — which typically define the strongest portion of an Elliott Wave trend.

What to expect during the wave IV pullback

However, the structure now suggests Wave III is approaching completion. There is still slight room for additional upside, but the risk-reward from fresh buying at higher levels becomes limited. According to Elliott Wave theory, once a third wave matures, the market normally transitions into Wave IV, a corrective and consolidating phase rather than a bearish reversal.

We expect Wave IV to unfold in at least three swings forming an A-B-C correction. This phase should cool off overbought conditions created during the extended rally and allow the market to rebuild energy for the next impulsive move. Corrections after strong advances are healthy and necessary for trend continuation.

Importantly, the broader bullish outlook remains intact as long as the major support near 130 holds. The upcoming decline should therefore be treated as a pullback within an ongoing uptrend.

After the correction completes, the stock is expected to start Wave V — the final leg of the cycle — which typically drives prices to new highs.

Summary

CCL Products appears close to completing Wave III. A three-swing Wave IV consolidation is likely next, followed by another bullish breakout in Wave V aligned with the long-term upward trend.