The Nifty 50 broke a 12-session sequence of lower highs on Thursday, offering some relief to bulls after the index opened higher but struggled to sustain its gains. According to market reports, the index moved within a narrow range of about 81 points before closing at 24,231.85, almost unchanged from its opening level. The move has improved the near-term technical setup, but the index still needs to clear key resistance levels for the recovery to gain strength. Thursday's session ended with the index close to its opening level, forming a Doji-like candlestick that points to indecision, with neither buyers nor sellers establishing clear control.
The index opened above its 50-day moving average and moved towards its eight-day exponential moving average, or 8-EMA, but failed to build enough momentum to extend the gains. As reported by market analysts, the index continued to hold an important support zone formed by the rising trendline and the 61.8% retracement level of its recent upswing. Momentum indicators have also improved, with the 14-period daily Relative Strength Index (RSI) rebounding from around the 40 level, while the Moving Average Convergence Divergence (MACD) histogram showed that bearish momentum was gradually easing. The break in the 12-session lower-high sequence marks a change in the recent price pattern, though further price confirmation is needed before the move can be treated as a reversal.
For bulls, Thursday's high of 24,265 is the first hurdle, followed by the 8-EMA at 24,279. According to technical analysis, a sustained move above the 24,265-24,280 zone could strengthen the recovery and take the index towards 24,346, where the 20-day moving average is currently placed. On the downside, the 50-day moving average at 24,160 is the immediate support level. A break below it would bring the 23,960-24,040 zone into focus, with a decisive move below this band potentially increasing selling pressure and exposing the Nifty to a deeper correction towards 23,700. Thursday's Doji-like formation makes the weekly close important, with a similar long-legged Doji formed last Friday but not leading to a reversal, requiring confirmation through follow-through buying.
Dixon Technologies has broken out of a five-week consolidation phase with a strong bullish candle, accompanied by a noticeable increase in trading volume. As reported by market analysts, the rise in volume supports the breakout and indicates stronger buying interest. The stock's Relative Strength line is also rising, suggesting it is outperforming the broader market. Dixon continues to trade above its key short- and long-term moving averages, with its technical setup strengthened as Bollinger Bands have begun to widen after a period of contraction. The moving average ribbon also remains in an uptrend, while momentum indicators are supportive with the daily MACD generating a bullish crossover, the 14-period RSI moving into bullish territory, and the Stochastic RSI and Elder Impulse System turning positive. A sustained move above ₹14,900 could open the way towards ₹15,600, with the stop loss maintained at ₹14,400, and if the stock decisively moves above ₹15,600, the next potential upside level is near ₹16,200.
A close above 24,265, and more importantly above the 8-EMA near 24,279, would improve the prospects of a near-term reversal. If the Nifty closes the week above 24,280, the next level to watch would be the 20-day moving average near 24,346. For Dixon Technologies, a sustained move above ₹14,900 could open the way towards ₹15,600, with the stop loss maintained at ₹14,400. If the stock decisively moves above ₹15,600, the next potential upside level is near ₹16,200.
