InterGlobe Aviation Ltd, known as IndiGo, is showing a long-term uptrend based on Elliott Wave analysis. The stock recently finished a significant Wave III around ₹6,000 and is now in a Wave IV correction. This pullback is part of a bigger bullish trend that started when Wave II ended in 2020, leading to a strong rise in Wave III. Currently, the decline in Wave IV is likely forming a double correction. There’s a blue box support zone between ₹4,774 and ₹5,232, determined by Fibonacci extensions. The market often reacts at these zones, and buying may happen here, supporting the overall trend. We expect a three-swing bounce before it possibly continues lower to finalize a ((W))-((X))-((Y)) structure within Wave IV. A Right Side Tag suggests that buying is favored, with the invalidation point at ₹1,487. As long as the prices stay above this level, we expect to see an upward trend leading into Wave V, which could take the stock to new highs. The correction into the blue box offers a buying chance for those following the main trend, and since Wave IV is close to being complete, Wave V might provide more upward potential. Looking at the current setup, it appears that InterGlobe Aviation is in a corrective phase after reaching near ₹6,000 earlier in 2025. This Wave IV pullback is a normal part of a larger uptrend. We are monitoring the important support zone between ₹4,774 and ₹5,232 for signs of buyer activity. For derivative traders, this presents a chance to prepare for the next upward move. As the stock nears this support area, selling cash-secured puts or starting bull put spreads with strike prices underneath ₹4,774 could be a smart strategy. These positions can benefit from time decay and a possible rebound in the stock price. The positive technical outlook is backed by strong fundamental data. Recent numbers from India’s Directorate General of Civil Aviation (DGCA) for November 2025 show a 9% year-over-year rise in domestic passenger traffic, highlighting robust travel demand as we approach the holiday season. IndiGo holds a strong market share, reported at just over 61%, indicating solid operational performance. Moreover, the cost situation for airlines has improved. After a spike in mid-2025, Brent crude oil prices have stabilized between $75 and $80 per barrel, easing Aviation Turbine Fuel (ATF) costs. This stability helps protect profit margins and enhances the earnings outlook at these corrected price levels. As we anticipate a bottom forming, we should keep an eye on implied volatility levels. An increase in IV as the price dips into the support zone would make selling options premiums more appealing. The main risk to this perspective would be a decisive drop and close below the ₹4,774 level, which would indicate a deeper correction is on the way. As long as pricing remains above the long-term invalidation point, the main trend is regarded as bullish. We expect the completion of this Wave IV correction to lead to a strong Wave V rally, with the potential to push IndiGo to new all-time highs in the first half of 2026.

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