Gladiator Stocks - Dixon Technologies - ICICI Direct

Strategy

Buy Dixon Technologies in the range of Rs. 9750.00-9950.00 for target price of Rs. 11400.00 with a stop loss of Rs. 8900.00. Time Frame: Six months

Technical View

The stock after the stupendous rally of April-September (Rs. 2990-10289) has witnessed a breather in the last two months, with shallow price correction thus exhibiting resilience despite elevated market volatility

It is currently at the cusp of breaking out of the last two months broad range ( Rs. 10000-8400) thus offering fresh entry opportunity. The share price has been trading in a well-defined rising channel since bottom out in March (Rs. 2990) signalling sustaining demand at elevated levels. It has recently rebounded taking support at the lower band of the rising channel highlighting strength and continuation of the up move

Strong volume in the entire up move signals larger participation in the direction of trend. Weekly MACD in uptrend and it is seen taking support at its nine periods average thus validates positive bias

We expect the stock to resume up move after the last two months breather and head towards Rs. 11400 levels in the coming months as it is the 161.8% external retracement of the recent breather (Rs. 10289-8375) placed around 11400 levels

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_GladiatorStocks_DixonTech_Nov20.pdf

Shares of Dixon Technologies (India) Ltd was last trading in BSE at Rs.10082 as compared to the previous close of Rs. 9551.8. The total number of shares traded during the day was 3263 in over 1343 trades.

The stock hit an intraday high of Rs. 10100 and intraday low of 9623.6. The net turnover during the day was Rs. 32442956.

Source : Equity Bulls

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