Technical Analysis

Technical Analysis of 1 stock (with 15-day horizon) [EasyDNNnews:PaidContentStart]

WHAT LIES AHEAD : NEAR-TERM PICTURE

SPOT NIFTY : On Thursday, the Nifty 50 opened with a gap-up and traded within a narrow 81-point range before closing at 24,231.85. The rebound helped the index break the sequence of lower highs seen over the previous 12 trading sessions. However, the close was almost unchanged from the opening level, resulting in the formation of a Doji-like candlestick, reflecting indecision at higher levels

The index opened above its 50-DMA and moved close to the 8-EMA but failed to build further momentum. Positively, it continued to respect an important support zone formed by the confluence of the rising trendline and the 61.8 per cent retracement of the recent upswing.

For the bulls, the immediate challenge is to move above Thursday’s high of 24,265 and the 8-EMA at 24,279. A sustained move above this zone could strengthen the recovery and open the way towards 24,346, where the 20-DMA is placed. On the downside, the 50-DMA at 24,160 is the first support, followed by the crucial 23,960-24,040 zone. A breakdown below this area could extend the correction towards 23,700.

The 14-period daily RSI has bounced from around the 40 mark, while the MACD histogram indicates some moderation in bearish momentum. With a similar Doji formed last Friday failing to trigger a reversal, Friday’s close becomes important. A weekly close above 24,280 would provide stronger confirmation of a rebound, with 24,346 emerging as the next key hurdle.

NIFTY DERIVATIVES: Nifty futures declined by 178 points from last Thursday’s close to this Thursday, settling at 24,294. Meanwhile, India VIX declined by 0.66, indicating that volatility remained contained despite the weekly decline. For the Nifty 50 weekly expiry on August 25, 2026, the PCR stands at 1.00, while the max pain level is placed at 24,250, keeping this level crucial for the immediate market structure. On the call side, total open interest stands at around 9.30 crore, while call OI declined by nearly 1.84 crore, indicating significant unwinding during the session. The 24,500 strike carries the highest call OI at around 1.48 crore, making it a major resistance zone. The 24,300–24,250 strikes also hold substantial call positions.

On the put side, total open interest stands slightly higher at around 9.35 crore, while put OI increased sharply by nearly 3.07 crore, indicating fresh put positioning. The 24,000 strike holds the highest put OI at nearly 1.65 crore, followed by 24,200, making the 24,000–24,200 zone an important support area for the index. Overall, the derivatives setup has turned more balanced with a mild positive undertone, as the PCR has reached 1.00 and strong put addition has been accompanied by call unwinding. The immediate support zone is 24,200–24,000, while 24,300–24,500 remains the key hurdle. A sustained move above 24,500 could improve momentum, whereas a break below 24,200 may trigger further weakness.

STOCK STRATEGY
DIXON TECHNOLOGIES (INDIA) LTD. ......... BUY .......... CMP ₹14,850.00
BSE Code ...... 540699
Target 1 .... ₹15,600
Target 2 .... ₹16,200 
Stoploss ...₹14,100 (CLS)

■ Current Observation: Dixon Technologies (India) Ltd is one of India’s leading players in the Electronic Manufacturing Services (EMS) space, providing end-to-end manufacturing solutions to domestic and global brands. The company manufactures a wide range of products, including consumer electronics, home appliances, lighting products and mobile phones. It operates through both Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM) models. Under the ODM model, Dixon also undertakes product design and development for its clients, giving it a broader role across the manufacturing value chain.

■ On the technical front, the stock has broken out of a fiveweek consolidation with a strong bullish candle. The breakout was accompanied by higher volumes, indicating healthy buying interest. Its Relative Strength line is trending higher, reflecting outperformance against the broader market. The stock is also trading above its key short- and long-term moving averages.

■ The Bollinger Bands have started expanding after a period of contraction, while the moving average ribbon remains in an uptrend. The daily MACD has generated a bullish crossover, and the 14-period RSI has moved into bullish territory. Stochastic RSI and the Elder Impulse System have also generated positive signals.

■ A sustained move above Rs 14,800 can take the stock towards Rs 15,600. Maintain a stop loss at Rs 14,100. Above Rs 15,600, the next potential level is Rs 16,200.

REVIEW OF STOCK STRATEGY
In Issue No. 44 dated August 13, 2026, we recommended Container Corporation of India as the stock was trading close to the pivot point of an ascending triangle pattern on the weekly chart. Following our recommendation, the stock moved higher in the next trading session and touched a high of Rs 543.70. However, it was unable to sustain at higher levels as the broader market came under pressure. The stock subsequently found support near its 20-DMA and rebounded on Thursday, indicating buying interest at lower levels. The technical setup therefore remains valid, and we continue to maintain our earlier view. Hold the position with the previously mentioned stop-loss and target levels.

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