D-Link India: Riding the 5G & Digital India Wave NSE:DLINKINDIA
📊 D-Link (India) Ltd – Technical & Fundamental Analysis
🔹 Technical Analysis
Trend Structure
Stock rallied from ~₹360 to ~₹590 and is currently in a corrective phase.
Presently trading around ₹476.55.
Fibonacci Retracement
Price is hovering near the 0.5 Fibonacci retracement (₹473.85).
Next key retracement support: 0.618 level (₹446.55).
Indicates the stock is at a critical support zone after a healthy pullback.
Volume Action
The correction is happening on low volumes (dry pullback).
Suggests lack of strong selling conviction.
Support & Resistance Levels
Support: ₹470 (Fib 0.5) and ₹446 (Fib 0.618).
Resistance: ₹520 (recent swing high) and ₹590 (previous top).
Technical View
Current price action reflects consolidation after a rally.
Sustainability above 470–446 zone will be important for future direction.
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🔹 Fundamental Analysis
Business Overview
Subsidiary of D-Link Corporation, Taiwan.
Operates in networking solutions: routers, switches, Wi-Fi systems, surveillance equipment.
Serves consumer, SME, and enterprise markets.
Financial Position
Revenue: Stable growth supported by IT demand.
Margins: Moderate (~6–8%) but consistent.
Balance Sheet: Debt-free and cash-rich.
Returns: ROE/ROCE in the range of ~15–20%.
Industry Drivers
5G rollout in India → boosts demand for networking gear.
Digital India & Smart Cities projects → infrastructure demand.
Work-from-home & hybrid culture → sustained Wi-Fi/router demand.
Enterprise IT upgrades → strong B2B demand.
Strengths
Global brand recognition.
Expanding market presence in India.
Strong cash reserves, no debt.
Risks
Intense competition (TP-Link, Cisco, Netgear).
Import dependency → currency fluctuations affect costs.
Technology cycles → rapid product obsolescence.
🔹 Future Growth Prospects
5G & Fiberization: Rising network infrastructure requirements.
IoT & Smart Homes: Increasing adoption of connected devices and Wi-Fi mesh solutions.
Government Push: Smart City & Digital India initiatives driving demand for surveillance and enterprise networks.
Enterprise Growth: SMEs and corporates upgrading IT networks post-pandemic.
🔹 Investor-Friendly Summary
Technically: Stock is undergoing a healthy pullback at a critical Fibonacci zone (0.5–0.618). Low volume suggests limited aggressive selling.
Fundamentally: Strong brand, debt-free, positioned to benefit from digital infrastructure growth. Risks include competition and currency fluctuations.
Future Outlook: Demand from 5G, IoT, and government projects offers long-term industry tailwinds.
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⚠️ Disclaimer:
This analysis is for educational and informational purposes only.
We are not SEBI-registered analysts or advisors.
This is our personal view based on available data and market trends.
Please consult your SEBI-registered investment advisor before making any investment or trading decisions.
You are solely responsible for any financial decisions you make based on this content.
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Trade Secrets By Pratik
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Dlink
D-Link - Textbook Symmetrical Triangle pattern NSE:DLINKINDIA
D-Link has formed a textbook Symmetrical pattern that has worked out so far
Although it is a bullish pattern one should wait for breakout confirmation to enter.
Those who want to minimize the risk should wait for retest and may enter after confirmation.
The breakout must also be validated by the volumes or else it'd be just another Fakeout.
According to Fibonacci Extensions after breakout 168.70 is immediate resistance might consolidate there for a while
On the downside 144.15 / 136.60 / 129 / 119.65 are support levels
Company also has decent fundamentals
It's long call so one can keep stop loss according to their risk appetite.
How Double Bottom Pattern looks likeWhat is double bottom pattern?
A double bottom pattern is a technical analysis charting pattern that describes a change in trend and a momentum reversal from prior leading price action. It describes the drop of a stock or index, a rebound, another drop to the same or similar level as the original drop, and finally another rebound.
How do you trade double bottom patterns?
First low – The market bounces higher and forms a swing low. At this point, it’s likely a entrancement in a downtrend.
Second low – The market rejects the previous swing low. Now, there’s buying pressure, but it’s too early to tell if the market could continue higher.
Break of neckline – The price broke above the Neckline (or Resistance) and it signals the buyers are in control — the market is likely to move higher.
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The False Break : How to trade the Double Bottom Pattern and profit from “trapped” traders
Now…
When you trade the Double Bottom, you must pay attention to the time and space between the lows — the larger the “gap”, the better.
Why?
Because when the lows are far apart, it gets the attention of more traders who could push the price higher.
As the price breaks below the first low, bearish traders will short the markets and have their stops above the lows.
But if the price quickly reverses higher, the short traders are “trapped”.
And you can take advantage of it by going long, anticipating if the price moves higher, it’ll trigger their stops and push the market in your favour.
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The Double Bottom Breakout Technique
Here’s the thing:
You don’t want to “chase” a breakout after the Double Bottom is formed because the price is likely to reverse lower.
Instead, you want to see strength from the buyers before buying a breakout.
Here’s how…
1) Identify a potential Double Bottom
2) Let the price to trade break above the previous swing high
3) Wait for a weak pullback to form (a series of small range candles)
4) Buy on the break of the swing high
Long DLinkNSE:DLINKINDIA
Chart is self explanatory. Entry, Targets and Trailing Stop Loss are mentioned on the chart.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
Intraday Trade: watch for swing high breakoutpullback and continuation from long term support
buy above 170 in Intraday
For stoploss in Intraday use 5 minute chart and see nearest support.
for target use 5 min chart and fibonacci pivots as i don't keep predefined target.
try to book partially and trail.
Note: this is not a prediction for LONG/SHORT, trade will trigger only on given level as per technical analysis
NOTE: For Gapup or bo before 9:20
If gapup is more than 1% from bo level than avoid completely.
if less than 1% or gives bo before 9:20 than wait for
first 5 minute candle and entry above 5 minute candle
and revised SL below candle Low.
watch for resistance breakoutbuy above 155 in intraday and swing
for swing trade wait for 15 min candle close (only for swing)
and for stoploss use it according to your risk.
For stoploss in Intraday use 5 minute chart and see nearest support.
for target use 5 min chart and fibonacci pivots as i don't keep predefined target.
try to book partially and trail.
Note: this is not a prediction for LONG/SHORT, trade will trigger only on given level as per technical analysis
NOTE: For Gapup or bo before 9:20
If gapup is more than 1% from bo level than avoid completely.
if less than 1% or gives bo before 9:20 than wait for
first 5 minute candle and entry above 5 minute candle
and revised SL below candle Low.
D-LINK (INDIA) BIG MOVE IN ACCUMULATION MODE [SLEEPING GIANT]D Link India can show a big move or stock can boom anytime. Charts Show that it is in a accumulation time with huge all time high volumes. 3 Rounding Bottom Formations which together form a big Rounding bottom pattern. This pattern is formed after a bullish uptrend from 40 levels and clearly in consolidation. Stocks like Smartlink have runaway significantly so i think this stock will also follow.