EW - 3

Purpose: Find investable Indian stocks showing impulsive Elliott-Wave-like momentum (Wave 3, 3-of-1, 3-of-3, 5-of-3) or deep corrective Wave C, while excluding junk/microcaps and operator-prone names. Quality Guardrails: Market cap > ₹1,000 cr, not on SME board, Piotroski > 4, Altman Z > 2.5, Interest Coverage > 3, D/E < 1, ROCE > 12, positive 5Y sales & profit growth, promoter holding > 40%, no promoter selling (≥0 change), pledging < 10%, positive cash from operations (last year). Technical Logic: • Impulses: strong 3M & 1M returns, RSI > 55–65, price above DMA50/200, and 1-week volume > 1-year avg (1.5–3x) to mimic Wave 3/3-of-3/5-of-3 behavior. • Corrective Wave C: negative 3M & 1M returns, RSI < 40, price below DMA50/200, capitulation volume, and >30% down from 52-week high. Notes: This is a high-quality pre-filter. Always do final checks on liquidity, delivery spikes, results/announcements, and chart structure before entries. Tweak return/RSI/volume thresholds to tighten or widen the list.

by Ajay