Dixon Technologies shares: Two factors behind the rally amid market crash today  

Shares of Dixon Technologies defied the market crash on Thursday. The multibagger stock closed 1.83% higher at Rs 11,985.65. Market cap of the firm rose to Rs 72,735 crore. Turnover stood at Rs 67.97 crore as 0.57 lakh shares of the firm changed hands on BSE. The stock is oversold on charts with its RSI at 29.2. A RSI below 30 indicates that a stock is oversold on charts. 

Investor sentiment around the Dixon Technologies shares was positive after analysts at Nomura retained 'BUY' rating on the EMS stock citing strong medium-term growth drivers. The Japan-based brokerage firm fixed a target price of Rs 16,598, implying a potential upside of up to 42.7 per cent.

JM Financial believes that Dixon has a strategy in place to reduce risk to margin and volumes, even as execution has been delayed. After correction in Dixon share price, the brokerage has maintained an 'ADD' rating, with a revised target price of Rs 13,800. 

However, JPMorgan has cut Dixon Tech's price target by 30% to Rs 13,700 from Rs 19,600 earlier. 

Another factor, which caused a rise in Dixon stock, was ICRA reaffirming positive credit ratings on the firm. 

Long Term/ Short Term- Fund based- Working Capital Facilities: [ICRA]AA (Stable)/ [ICRA]A1+: re-affirmed. 

Short Term- Non-Fund Based- Working Capital facilities: [ICRA] A1+; re-affirmed. 

Long Term/ Short Term- Unallocated: [ICRA] AA (Stable)/ [ICRA] A1+; re-affirmed.

Dixon Technologies shares are trading in a weak zone. The stock trades lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages, signalling the trend has been on a negative side for the market leader in its segment. 

The multibagger stock has fallen 29.11% in a year and gained 214% in three years. In the short term, the stock has fallen in six months, three months and a week. 

Dixon Technologies stock has been under pressure under fears of weak Q3 earnings amid risk to volume and margin growth owing to lack of requisite government approvals and the company losing market share in smartphones market.

Meanwhile, Sensex and Nifty closed lower for the fourth straight session today. Investor wealth crashed by Rs 8 lakh crore as Sensex fell 780 points or 0.92 per cent at 84,181. Nifty50 too shed 264 points or 1.01 per cent to close at 25,877.