Lodha Developers Ltd. is one of India’s leading real-estate developers, with a strong presence in the Mumbai Metropolitan Region and Pune. The company has delivered consistent growth in revenue, profitability, and pre-sales, supported by strong demand for residential and premium housing projects. In FY2025–26, the company reported revenue of around ₹16,680 crore and consolidated PAT of approximately ₹3,430 crore, reflecting healthy year-on-year growth.
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| Figure 1 |
Wave Analysis
Let us now move to the technical picture and
examine the Elliott Wave structure of Lodha Developers. The current
price action appears to be forming a corrective structure, and the wave
development on the higher and lower time frames provides important clues about
the possible next move.
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| Figure 2 |
The Weekly chart of Lodha
Developers Ltd suggests that the stock is currently unfolding a corrective
structure following its earlier advance. As marked on the chart, Wave (A) and
Wave (B) appear to be complete, while Wave (C) is in progress
and not yet complete. Therefore, our primary focus will now be on
understanding the structure and internal development of Wave (C), which should
help us assess the possible direction and targets of the stock in the coming
period.
Before analysing Wave (C) in
detail, however, it is important from a learning perspective to examine how the
internal waves of Wave (A) and Wave (B) were formed. We will study their
respective subdivisions, patterns and Fibonacci relationships to understand how
the different waves developed within this larger corrective structure. This
exercise will provide a practical example of how an Elliott Wave correction can
be analysed from its internal wave structure and Fibonacci ratios before moving
on to the likely completion of Wave (C).
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| Figure 3 |
On the weekly chart of Lodha
Developers, Wave (A) appears to have developed as a clear impulsive five-wave
structure, consisting of Waves 1, 2, 3, 4 and 5. An interesting aspect of this
structure is the Fibonacci relationship of Wave 3. Using the Fibonacci
Extension tool, we can see that Wave 3 extended to approximately the 161.8%
Fibonacci extension level of Wave (A), reaching around ₹1,268. This is
consistent with a normal and proportionate third wave, rather than an unusually
extended wave.
Following the completion of
Wave 3, Wave 4 unfolded as a corrective phase, after which Wave 5 completed the
impulsive sequence. Therefore, the internal structure of Wave (A), together
with its Fibonacci relationships, strongly supports the interpretation that
Wave (A) was an impulsive wave consisting of five complete sub-waves. This
provides an important foundation for understanding the larger corrective
structure currently developing in Lodha Developers.
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| Figure 4 |
On
examining Wave 5 of Wave (A), we can see that its magnitude falls approximately
within the 61.8% Fibonacci expansion level of Wave 0-3. This indicates that
Wave 5 has developed as a normal, proportionate fifth wave, rather than an
extended or truncated wave. With Wave 5 completing the five-wave impulsive
sequence, the entire Wave (A) can therefore be considered complete.
According
to Elliott Wave principles, once an impulsive Wave (A) is completed, the market
normally undergoes a corrective Wave (B) in the opposite direction. In the case
of Lodha Developers, the subsequent price movement appears to represent this
Wave (B). We will now examine the internal structure and Fibonacci
relationships of Wave (B) in detail before moving on to the ongoing Wave (C).
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| Figure 5 |
After the completion of Wave
5, and consequently the entire Wave (A), the stock entered a corrective phase in
the form of Wave (B). As shown in the chart, Wave (B) appears to have developed
as a 3-3-5 corrective structure. Its Wave A consists of three internal waves,
followed by a three-wave Wave B, while Wave C unfolded as a five-wave impulsive
structure.
The Fibonacci relationship
within Wave (B) is also particularly interesting. When Wave C is measured using
the Fibonacci Extension tool, it is seen to have extended to approximately the
138.2% Fibonacci extension of Wave A, where the decline found significant support.
This Fibonacci relationship, together with the internal 3-3-5 structure,
provides further confirmation of the corrective nature of Wave (B).
Having understood the internal
structure and Fibonacci relationship of Wave (B), we can now turn our attention
to the larger Wave (C) and examine what structure is developing within it and
what the Elliott Wave pattern may indicate for the stock's next major move.
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| Figure 6 |
Another interesting aspect of
the structure is the Fibonacci retracement of Wave (B). As shown in the chart,
Wave (B) retraced Wave (A) by approximately 61.8% to 70.7%, with the decline
finding support within this Fibonacci retracement zone. This is a significant
observation because a retracement of this magnitude is consistent with the
characteristics of a zigzag correction.
Therefore, the price action
and Fibonacci relationship together strengthen our interpretation that the
larger Wave (B) is forming a zigzag structure. Once Wave (B) is complete, the
subsequent Wave (C) is expected to unfold as an impulsive five-wave structure,
as required by the Elliott Wave rules. Our next step, therefore, is to examine
the developing Wave (C) and determine its internal wave structure and potential
Fibonacci targets.
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| Figure 7 |
We now move to the internal
structure of Wave (C). As shown in the daily chart, Wave 3 appears to have been
completed, while Wave 4 is currently under formation. An important observation
is that Wave 3 has reached just the 161.8% Fibonacci extension level of Wave
A. This suggests that Wave 3 has developed as a normal impulsive third wave
rather than an unusually extended move. Moreover, the internal subdivisions of
Wave 3 have also been completed, giving us greater confidence in the current
Wave 3 count.
The next area of focus is
therefore Wave 4. From the price structure visible on the chart, Wave 4 appears
to be developing in a zigzag corrective pattern, with its internal A and B
waves seemingly complete, while the C wave is still unfolding. The key question
now is whether this C wave has already completed or whether further downside is
still required to complete Wave 4. Once the structure of this C wave becomes
clearer, we should have a better understanding of the next probable direction
and potential movement of Lodha Developers.
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| Figure 8 |
Looking closely at the
structure developing within Wave 4, it appears that the internal A and B waves
have already been completed, but the C wave cannot yet be considered complete,
as its internal structure is still unfinished. According to Elliott Wave
principles, the C wave unfolds as an impulsive five-wave structure. Since the
required five-wave subdivision has not yet been completed in the chart, there
is insufficient evidence to confirm the end of Wave 4 at the present level.
Therefore, the preferred count
suggests that Lodha Developers may experience some further downside to complete
the C wave of Wave 4. Once this corrective structure is completed, the stock is
expected to resume its upward movement in Wave 5. The blue projected path on
the chart illustrates this possible scenario—an additional decline to complete
Wave 4, followed by a strong upward move forming Wave 5.
This is the preferred Elliott
Wave interpretation based on the structure currently visible on the chart; the
count will need to be reassessed as price action develops.
Disclaimer: The information and Elliott Wave
analysis presented in this article are intended solely for educational and
informational purposes. They represent the author's interpretation of market
price action and should not be considered as investment, financial, or trading
advice. The author is not a SEBI-registered Investment Adviser or Research
Analyst. Readers should conduct their own research and consult a
SEBI-registered financial professional before making any investment decisions.
Investing in the stock market involves risk, and past performance does not
guarantee future results.