Jio Financial Services has resumed its upward trend after reaching a low near 198.47 INR, completing a correction phase. This marked the beginning of wave (5) in a larger Elliott Wave sequence, initiating a bullish wave III.
The stock has demonstrated strong upward momentum since this low, developing a five-wave impulsive move in wave ((1)) of III. This latest wave began in April and was characterised by an impulsive wave (1), a corrective wave (2), followed by a strong wave (3) and a shallow wave (4) pullback.
The recent breakout indicates wave (5) of wave ((1)) is currently in progress, with further upside anticipated before entering a larger wave ((2)) correction. The crucial level for maintaining this bullish perspective is 198.47 INR, as staying above this suggests dips are corrective and present buying opportunities.
The ongoing rally forms part of a broader bullish cycle that started after the March low. Monitoring the development of wave (5) is advisable, with shallow pullbacks potentially providing advantageous risk-reward long positions as the wave III rally continues.
With Jio Financial Services resuming its uptrend, we see the current momentum as part of a larger bullish cycle. The stock has shown remarkable strength since the lows we saw back in March 2025, validating the start of a new primary rally. As of early August 2025, the price action remains strong, pushing past the 390 INR mark.
This move is supported by fundamental developments, including the strong first-quarter earnings for fiscal year 2026 reported last month. We saw a 22% quarter-over-quarter increase in assets under management (AUM), a figure that beat market expectations and fueled investor confidence. The broader market sentiment is also positive, with the Nifty 50 holding firmly above the 25,000 level for the past few weeks.
For the coming weeks, we believe buying call options on minor dips is a sound strategy. This allows traders to capitalize on the expected continuation of this final push in the smaller wave pattern. Look for shallow pullbacks towards the 375-380 INR range as potential entry points for short-term call positions with September 2025 expiry.
However, we must also prepare for the larger corrective wave ((2)) which is anticipated after this current rally concludes. As the stock approaches historically significant resistance near the 420-430 INR zone, we should consider taking profits on long positions. It would be prudent to start looking at protective put options to hedge against a sharper, albeit corrective, downturn.
Given the critical support level of 198.47 INR is still far below the current price, selling out-of-the-money puts can be an effective way to generate income. A bull put spread, perhaps selling the 360 INR strike and buying the 350 INR strike for the September 2025 series, offers a defined-risk way to bet that the price will remain above these levels. This strategy benefits from both the upward trend and time decay.
Monitoring the price action closely is key, as this current wave is likely in its late stages. We are looking for signs of exhaustion, such as decreasing volume on new highs, which would signal the impending start of the larger pullback. Historical data from similar fast-growing financial firms in 2022 and 2023 showed that after such parabolic runs, corrections can be swift.
