NIFTY Index Chart Analysis

The benchmark Nifty 50 index rallied 18 per cent from the April lows of 21,743.65 to a high of 25,669.35 in June. Following this sharp rally, the index corrected over the next two months, posting back-toback losses of more than 4 per cent. With this pullback, Nifty has retraced about 38.2 per cent of the prior up-move.[EasyDNNnews:PaidContentStart]

The recent price action in July and August offers important cues. In July, the index formed an inside candle on the monthly chart, which also qualified as an NR7 pattern. In August, Nifty closed below the low of both the inside candle and the NR7 candle, while also breaching the June low. However, despite forming a bearish candle in August, the range was relatively narrow. This makes the breakdown questionable, particularly as the index is hovering around the 38.2 per cent retracement level, and the candlestick structure is not convincing enough to confirm a decisive move.

September began on a positive note, with Nifty snapping a three-day losing streak on September 1. The rally was fuelled by better-than-expected GDP growth data and robust auto sales numbers. The Nifty Auto index surged nearly 2.8 per cent, with all its constituents closing in the green. As a result, the benchmark index closed above the prior day’s high, although it still remains below the 20-DMA. Currently, Nifty is trading below both the 20-DMA and 50-DMA, but importantly, it continues to hold above its long-term 200-DMA, signalling that the broader uptrend is still intact.

Encouragingly, the broader market outperformed. The Nifty Midcap index gained nearly 2 per cent, recovering ground lost in the previous two sessions and outperforming the frontline index. Similarly, the Nifty Smallcap 100 index also reclaimed its crucial 200-DMA, reinforcing the strength of the broader market.

Given the broad-based buying, the bounce is likely to extend in the coming days. That said, bulls are not entirely out of the woods, with multiple overhead resistances to contend with. The 24,750–24,850 zone, where key moving averages are placed, is likely to act as the immediate hurdle. Sustaining above this zone would open the gates for a move towards 25,000 on the upside. On the downside, the 24,450–24,350 band, which marks a multi-month swing low coinciding with a bullish gap, remains a key support, followed by the 24,100– 24,000 band where the long-term 200-DMA is placed. In this setup, traders should adopt a buy-on-dips strategy while keeping in mind global uncertainties that could keep volatility elevated. For the fortnight ahead, a cautious and stock-specific approach is advised. With the index still below critical resistance levels, aggressive buying should be avoided. Traders would do well to protect gains and closely monitor the 24,450 - 24,350 level as a key support. A measured and vigilant approach, with strict stop losses, remains the best way to navigate the fortnight.

STOCK RECOMMENDATIONS
DIXON TECHNOLOGIES (INDIA) .................. BUY ............... CMP ₹17,585.55
BSE Code : 540699
Target 1 .... ₹19,100 
Target 2 ..... ₹19,700 
Stoploss....₹16,730 (CLS)

Dixon Technologies (India) Limited is the largest home-grown, design-focused, and solutionsoriented company engaged in manufacturing products in the consumer durables, lighting, and mobile phone markets in India. Its diversified product portfolio includes: (i) Consumer electronics such as LED TVs; (ii) Home appliances such as washing machines; (iii) Lighting products including LED bulbs, tube lights, and downlighters; (iv) Mobile phones; (v) Wearables and hearables; (vi) Refrigerators; and (vii) Telecom and IT hardware products.

From a technical perspective, the stock has witnessed a breakout of the inverse head and shoulders like pattern on the daily chart, marked by the formation of a sizable candlestick and supported by robust volume, which was twice the 30-day average. This highlights strong market participation in the direction of the trend. Currently, the stock is trading at a 7-month high, positioned above all short and long-term moving averages, with each trending upward in a desired sequence. The stock also meets most CANSLIM characteristics. It has an EPS Rank of 98, which is an excellent score reflecting consistent earnings. Its RS Rating is 80, indicating solid outperformance compared to peers, while Buyer Demand stands at A-, evident from the recent surge in demand. Considering these factors, we recommend buying this stock with a stop loss at ₹16,370 and targets of ₹19,100 followed by ₹19,700.

ENDURANCE TECHNOLOGIES ............. BUY ....................... CMP ₹2,938.50
BSE Code : 540153
Target 1 ...... ₹3,180
Target 2 ..... ₹3,240 
Stoploss.....₹2,770 (CLS)

Endurance Technologies is a leading automotive component supplier with comprehensive capabilities in design, development, and manufacturing. The company offers a diverse range of technology-driven products across its operations in India and Europe (Italy and Germany).

Technically, the stock is approaching the pivot point of a 63-week-long cup and handle pattern. Recent sessions have witnessed a spike in volume on bullish days, signalling renewed buying interest. The stock is trading above its 20-, 50-, and 200-day moving averages, all of which are trending in the desired direction.

It also aligns with most CANSLIM parameters. The RS Rating of 87 indicates strong relative performance, while Buyer Demand at A- reflects active accumulation. A Group Rank of 21 places it in the strong Auto/Truck–Original Equipment group, and a Master Score of B is close to the top range. The 14-period daily RSI has shifted into a super bullish range, holding above 60, and the daily MACD continues to sustain above its nine-period average, confirming a positive bias. Considering these factors, we recommend buying this stock with a stop loss at ₹2,770 and a target range of ₹3,180– ₹3,240.

*LEGEND:  ◼ EMA - Exponential Moving Average.  ◼ MACD - Moving Average Convergence Divergence  ◼ RMI - Relative Momentum Index  ◼  ROC - Rate of Change  ◼ RSI - Relative Strength Index
(Closing price as of September 01, 2025)

Disclaimer : Above recommendations are based on various technical parameters and any fundamental input has not been considered for the recommendations. Follow strict stop loss for the recommendation.

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