united spirits have been in an uptrend and has given a phenomenal returns in last few years. Now we would try to look into, what Elliott wave is pointing towards. The Elliott wave is indicating that the stock has started an good up move from the year 1998 onwards and its 3rd wave has started from 2004 onwards and the 3rd wave has risen from Rs.33 to around Rs.2000 a 60x return in just four years. From 2012 onwards its has started is 5th wave and we are in the 5th wave it seems that we have completed the 5th wave of the 5th, but the parallel lines are not supporting the same, so we cannot now confirm that the stock has completed a 5 wave structure from 1998 onwards. But the short term it appears hat it has completed one 5 wave structure and we have all chances of some major turning point has occurred in the stock and at-least for some weeks or months we have chances of seeing the stock correct. So what are the probable corrective range the low of the 4th wave its either 2000 or 1700 levels. so we have all chances of seeing these levels, 1700 is a probable. If it has corrected a major wave then the stock can all the wave to the support line which is around 1000 levels. So is it healthy to buy this stock at these levels. EW is not pointing towards the same. The EW update would be seen as the picture unfolds. one this is sure if we apply the channeling technique the longer term wave structure is indicating that we have very long price targets but that would be furnished when the picture becomes clear. As of now it appears to be in down trend, so wait for it to reverse.  

 

M.Sri Mahidar

Trend is Friend.