United Spirits Limited is maintaining a positive trend in its long-term Elliott Wave structure according to monthly chart analysis. A distinct shift from correction to impulse since 2020\u20132021 suggests a new bullish cycle, with key Fibonacci targets in range.<\/p>\n
From the Wave IV low, the price has moved in a five-wave structure. Waves (1) and (2) have defined the trend direction, with Wave (3) showing strong upward momentum. Wave (4) appears to be a sideways contracting triangle, signalling a potential rise in Wave (5).<\/p>\n
Fibonacci extension levels mark the upside targets. The \u20b91,798 zone corresponds with the 1.236 extension, seen as a cautious fifth-wave target. A reach towards \u20b91,962 aligns with the 1.618 Fibonacci level. Price may react around these areas as Wave I nears completion.<\/p>\n
After Wave I ends, a corrective Wave II is expected, with support anticipated near the 0.382 retracement level, around \u20b91,208. This aligns with previous price structures, suggesting a potential technical reaction. Such a pullback is viewed as corrective, not a trend reversal.<\/p>\n
The analysis indicates selling is not advisable. The Elliott Wave structure remains valid as long as the price stays above \u20b984, suggesting long-term bullish opportunities.<\/p>\n
Given the current consolidation, which we see as a Wave (4) triangle, option premiums are relatively subdued. Implied volatility for United Spirits has compressed, dropping to near 22% in early December 2025 from over 30% during the post-earnings spike in October. This environment makes it cheaper to establish long positions for the next expected move higher.<\/p>\n
For the coming weeks, we believe a bull call spread is an effective strategy to target the anticipated Wave (5) rally. A trader could consider buying a January 2026 expiry call option with a strike price around \u20b91,600 and simultaneously selling a call at the \u20b91,800 strike. This defined-risk trade is designed to profit from the expected move towards the initial \u20b91,798 target.<\/p>\n
A more conservative approach would be to sell out-of-the-money put credit spreads, which aligns with the view that selling is not recommended. For instance, selling a January 2026 \u20b91,400 put while buying a \u20b91,350 put for protection collects premium and profits as long as the stock stays above the short strike. This strategy is supported by the company’s strong performance, having reported a 15% year-over-year increase in net profit for the quarter ending September 2025.<\/p>\n
Market data reinforces this bullish outlook, as we have observed a significant buildup in open interest for the January 2026 \u20b91,700 and \u20b91,800 call options. This suggests that other market participants are also positioning for a substantial upward move in the near future. The continued narrative around premiumization in the beverage sector further supports this sentiment.<\/p>\n
As the stock price moves towards the \u20b91,798\u2013\u20b91,962 target zone, traders should become vigilant for signs of the rally losing momentum. We recall a similar sharp rally in 2023 that was followed by a multi-month correction. Once Wave I appears to be complete, it would be prudent to take profits on bullish positions in anticipation of the corrective Wave II pullback towards the \u20b91,208 level.<\/p>\n
Any short-term weakness during this current consolidation should be viewed as an opportunity to build positions rather than a signal of a trend change. We saw a similar sideways pattern in late 2024 before the price broke upwards from the \u20b91,350 level. With the primary trend remaining firmly up, the strategic focus should be on positioning for the next leg higher.<\/p>\n","protected":false},"excerpt":{"rendered":"
United Spirits shows bullish Elliott Wave pattern, targeting \u20b91,798\u2013\u20b91,962, with support near \u20b91,208 afterward.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-37000","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/37000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=37000"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/37000\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=37000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=37000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=37000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}