Dixon Technologies (India) Ltd bounced from an Elliott Wave support area after a correction. This move suggests Wave IV may be complete and a new upward Wave V may be starting.
Wave IV is described as ending inside a support zone between the 50% and 61.8% Fibonacci retracement of Wave III. The pullback followed a corrective ((A))-((B))-((C)) pattern and finished within this zone.
Price then turned higher from the same area. In this framework, that rebound is a trend-continuation signal. The next phase is labeled Wave V, with smaller pullbacks expected inside it as wave ((1)) and ((2)) sequences.
Two Fibonacci-based targets are set for Wave V. The minimum target is 21,528, based on a 1.236 external retracement of Wave IV. This is described as about 80% upside from recent levels. An extended target is near 24,800.
The setup stays valid while price holds above the blue box support zone. A sustained break below that zone would mean the wave count should be reviewed.
The bullish structure has played out as expected, with price rising strongly from the major support zone formed last year. That rebound supports the view that corrective Wave IV has ended, and the market is now showing early signs of a strong Wave V advance. The price action since late 2025 also supports the idea that institutional buying took place inside that key Fibonacci support area.
Recent fundamentals add support to the technical view. In its Q3 earnings release last month, the company reported 22% year-over-year revenue growth. This growth was driven by new contracts in the mobile manufacturing division and continued benefits from the government’s Production-Linked Incentive (PLI) scheme. The market appears to be pricing in continued operating strength.
With current momentum, implied volatility in near-term options has started to rise, which makes buying calls more expensive. Short-term dips or sideways moves may offer better entry prices for bullish positions. The brief pullback in the final quarter of 2025 is viewed as a typical wave ((2)) setup, which provided a good entry before the current acceleration.
Over the next few weeks, call options expiring in April or May offer a direct way to target the expected uptrend. Traders may also consider bull call spreads to reduce upfront cost and limit risk, which can be useful after a sharp move higher. These strategies aim to capture upside as the stock moves toward the initial 21,528 target.
The broader outlook still points toward the 24,800 area, though this likely plays out over several months. The main risk is a drop back below the key support zone from last year. As long as price stays above that level, the bias remains upward.
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