CCL Products (India) Limited has been in a rising Elliott Wave pattern on the monthly chart since it formed a cycle low near ₹130. From that base, the price has moved up in a five-wave advance within a broader uptrend.
The stock is currently in Wave III of this larger cycle. Within Wave III, the structure shows smaller waves (1), (2), (3), (4), and a final (5). The move up has been strong, with fast momentum, shallow pullbacks, and a steady series of higher highs.
Wave III now looks close to completion. There may still be some upside ahead, but the risk-reward becomes less attractive as prices rise further. Under Elliott Wave theory, Wave III is usually followed by Wave IV, which is typically a corrective and sideways phase—not a major trend reversal.
Wave IV is expected to develop as an A-B-C correction, with at least three swings. This should ease the “stretched” conditions created by the prior rally and help set up the next advance.
The long-term uptrend remains intact as long as support near ₹130 holds. After Wave IV finishes, Wave V is expected to begin and push the stock to fresh highs within the same cycle.
The recent rally in CCL Products is also showing signs of fatigue as it approaches the ₹875 area. Momentum indicators like the Relative Strength Index (RSI) have stayed above 75 for weeks, which is a classic overbought signal (as seen in the January 2026 data). For derivatives traders, this means starting new long positions at current levels carries much higher risk.
A corrective pullback now appears likely. This risk increased after the latest quarterly results showed slightly slower growth in export volumes. We expect this consolidation phase could pull the price back toward the ₹720–₹750 zone in the coming weeks. Traders may consider buying put options with March or April 2026 expiries to position for this potential dip.
A similar setup appeared in the second half of 2025, when the stock fell about 20% before the main uptrend resumed. This next decline should be seen as a normal reset, not a breakdown. It may create the next high-probability entry window.
Once the A-B-C correction looks complete, traders should get ready for the next upward leg. At that stage, they can begin accumulating longer-dated call options or selling cash-secured puts near key support levels. The aim is to be positioned for the Wave V rally, which is expected to take the stock to new all-time highs later in the year.
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