On D-Street, the buzz around Ola Electric has been electrifying, quite literally. After a phase during which investor sentiment faltered, the stock has staged a remarkable turnaround, gaining 30% in August and an additional 15% on the first day of September. It appears that the battery has finally recharged.
According to the Wyckoff theory, it seems to be an accumulation by smart investors. If you have ever studied the Wyckoff framework, you will know it’s all about understanding market psychology through price and volume, identifying phases of accumulation before a major trend reversal. Ola Electric appears to have followed this script almost to perfection. Let’s break down the journey step by step.
1. Preliminary Selling (August–November 2024)
The first warning signs came when the stock price began its descent. Between August and November 2024, Ola Electric fell by 57%. This phase is what Wyckoff terms as Preliminary Selling (PS), where the initial selling pressure begins, and the first tremors of weakness are felt. Investors start offloading positions, often driven by panic or profit booking, but the larger market players remain observant, quietly preparing for the next stages.
2. Selling Climax (December 2024–March 2025)
The descent accelerated between December 2024 and March 2025, during which the stock fell by 54% from its bounce, accompanied by heavy trading volumes. Wyckoff refers to this as the Selling Climax (SC), the point at which weak hands exit, and the selling pressure reaches its peak.
At this stage, professional operators often begin to absorb shares, quietly accumulating in anticipation of a future rebound. For Ola Electric, this marked the depth of pessimism and the moment when potential buyers quietly stepped in, setting the stage for recovery.
3. Consolidation and Support Formation (March–July 2025)
After the intense selling pressure, the stock entered a consolidation phase. Between March and July 2025, Ola Electric established two critical support zones, Support Test 1 and Support Test 2. This phase is crucial in Wyckoff analysis, often referred to as the “Phase B” or building of the Cause. It is where the stock stabilises and accumulation is methodical rather than impulsive.
4. The Spring and Potential Bottom (July 2025)
The pivotal moment arrived in July 2025 with the formation of the Spring at a low of Rs 39.62. Spring is the hallmark of the Wyckoff Accumulation phase, representing the final shakeout before a new uptrend begins.
Interestingly, the stock saw its highest trading volumes post-listing during this phase, signalling that institutions and smart money were quietly taking positions.
The Spring serves a dual purpose:
- It traps late sellers while confirming the presence of significant buying support.
- Establishing the potential bottom for the stock.
5. Last Point of Support (LPS) and Reversal (August 2025)
Following the Spring, Ola Electric formed the Last Point of Support (LPS) around Rs. 40. This phase witnessed a sharp reversal, with volumes surging as buyers regained confidence.
In Wyckoff terms, the LPS confirms that the accumulation phase is complete, and the stock is now primed for a potential new trend. For traders, this is often the clearest signal to enter the market, as the probability of a sustained uptrend increases substantially.
6. Breaking Resistance Zone
With the accumulation phase seemingly complete, Ola Electric has broken out of the resistance zone, signalling the beginning of a new trend. Horizontal count projections suggest that the stock could potentially move towards Rs. 90.
Follow the Buzz
Ola Electric’s recent chart structure is a textbook case of Wyckoff Accumulation in action. From Preliminary Selling to the Selling Climax, followed by careful consolidation, the Spring, and the Last Point of Support, the stock reflects a strategic accumulation. As the Ola Electric battery has been recharged, the potential new trend seems begun.
Disclaimer
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Kiran Jani has over 15 years of experience as a trader and technical analyst in India’s financial markets. He is a well-known face on the business channels as Market Experts and has worked with Asit C Mehta, Kotak Commodities, and Axis Securities. Presently, he is Head of the Technical and Derivative Research Desk at Jainam Broking Limited.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
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