Jio Financial Services has started to rise again after hitting a low of 198.47 INR. This marked the end of a correction phase and the start of wave (5) in a larger Elliott Wave pattern, kicking off a bullish wave III. Since reaching that low, the stock has gained significant momentum, creating a five-wave move in wave ((1)) of III. This recent wave began in April and includes an impulsive wave (1), a corrective wave (2), followed by a strong wave (3) and a small wave (4) pullback. The latest breakout indicates that wave (5) of wave ((1)) is in progress. More gains are expected before we enter a larger wave ((2)) correction. A key level to watch is 198.47 INR; remaining above this level means any dips are corrective and could be good buying opportunities. The current rally is part of a larger bullish cycle that began after the March low. It is wise to monitor wave (5), as minor pullbacks may provide good chances for long positions as wave III continues. Jio Financial Services has resumed its uptrend, and we see this momentum as part of a bigger bullish cycle. The stock has been strong since the March 2025 lows, indicating a new primary rally. As of early August 2025, the price has climbed above 390 INR. This upward move is backed by solid developments, including strong first-quarter earnings for fiscal year 2026 released last month. Assets under management (AUM) grew by 22% from the previous quarter, surpassing market expectations and boosting investor confidence. Overall market sentiment is positive, with the Nifty 50 remaining above 25,000 for several weeks. In the coming weeks, buying call options on minor dips is a smart strategy. This approach allows traders to benefit from the anticipated push in the smaller wave pattern. Watch for shallow pullbacks to the 375-380 INR range as potential entry points for short-term call positions expiring in September 2025. However, we should also be ready for the larger corrective wave ((2)), expected after this rally ends. As the stock approaches significant resistance near the 420-430 INR zone, consider taking profits on long positions. It’s wise to explore protective put options to guard against a potential sharp decline. Since the critical support level of 198.47 INR is still well below the current price, selling out-of-the-money puts can generate extra income. A bull put spread, such as selling the 360 INR strike and buying the 350 INR strike for the September 2025 series, offers a defined-risk way to bet on the price staying above these levels. This strategy benefits from both the upward trend and time decay. Keeping a close eye on price movements is essential as this wave nears its end. Look for signs of exhaustion, like lower volume on new highs, which could signal the start of a larger pullback. Historical data from other fast-growing financial firms in 2022 and 2023 shows that after rapid growth, corrections can happen quickly.

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