DIXON - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.2

📊 Technical & Momentum Overview

✅ Bullish Signals

Price Action: Trading well above both 50 DMA (₹16,928) and 200 DMA (₹15,373), confirming strong short- and medium-term trend.

MACD (440): Exceptionally strong momentum signal.

RSI (72.3): Overbought zone—momentum is peaking, but still tradable with caution.

Volume Surge: Current volume is ~78% higher than 1-week average—strong participation.

DII Inflow (+3.61%): Strong domestic institutional support.

52W Index (88.2%): Trading near yearly high—momentum breakout confirmed.

📈 Fundamental Snapshot

EPS (₹92.2) vs P/E (782): Extremely overvalued—pricing in aggressive future growth.

PEG (674): Suggests valuation is disconnected from earnings growth.

ROCE (11.7%) & ROE (8.71%): Moderate efficiency.

Debt-to-Equity (0.14): Low leverage—adds margin of safety.

PAT Qtr (₹15.9 Cr) vs Prev Qtr (₹65.7 Cr): Sharp earnings decline (–43.2%).

FII Outflow (–1.26%): Foreign investors booking profits.

Despite valuation concerns, Dixon has raised FY25 revenue guidance to ₹40,000 Cr and expects margin expansion in its mobile segment, which now contributes 82% of topline

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. Brokerages like Nomura maintain a bullish stance with targets around ₹18,564

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🎯 Optimal Entry Price

Buy Zone: ₹17,400–₹17,600 (pullback near 50 DMA and breakout base)

Momentum Entry: ₹18,350–₹18,400 if RSI cools below 70 and MACD remains strong

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹19,000–₹19,150 (near 52W high and resistance zone)

Stop Loss: ₹16,800 (below 50 DMA and recent support)

Exit Trigger: RSI > 75 or MACD flattens

Selva, DIXON is riding a high-momentum breakout with strong institutional support and sector tailwinds, but valuation and earnings volatility demand disciplined execution. If you're building a contract manufacturing or electronics basket, I can help you script MACD reversal alerts or optimize entry logic across the segment.

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