DIXON - CHART ANALYSIS

$DIXON is showing early signs of recovery after a prolonged correction from the 18,000 zone. On the daily chart, the stock has created a stable base near 10,000–10,500 and is now trading around 11,280 with improving momentum. Price has moved above short-term moving averages like the 8 EMA and is attempting to sustain above the 33 EMA, indicating gradual strength returning to the counter. The 200-day moving average remains far above current price and continues to slope downward, which means the long-term trend is still weak. However, Bollinger Bands have started tightening, signaling reduced volatility and the possibility of a fresh breakout move. RSI has also climbed above the 50 mark, supporting improving bullish sentiment. Immediate support is placed near 11,000 followed by the stronger demand zone around 10,100. As long as the stock holds these levels, downside pressure may remain limited. On the upside, resistance is seen near 11,800 and then 12,350. A decisive breakout above 12,350 could attract fresh buying momentum and push the stock toward 13,000–13,500 levels. Price action suggests sellers are losing strength as candles near the bottom are becoming smaller while buyers are actively defending lower levels. The stock is also attempting to form a higher-low structure, which is often considered an early reversal signal. Fundamentally, Dixon continues to benefit from India’s growing electronics manufacturing sector. Expansion in mobile phones, IT hardware, exports, and component manufacturing remains a long-term positive trigger. Overall outlook remains cautiously bullish with accumulation strategy preferred on dips while keeping 10,000 as a major positional support.