DIXON - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.4

📊 Analysis Summary

DIXON is showing strong bullish momentum supported by excellent fundamentals and technical breakout signals. Despite its high valuation, the stock is a promising swing trade candidate due to its high ROE/ROCE, strong earnings growth, and positive MACD and RSI indicators. However, caution is warranted due to reduced FII interest and low dividend yield.

🔍 Technical Indicators

RSI (70.7): Overbought — momentum is strong but nearing exhaustion.

MACD (465): Bullish — confirms upward momentum.

Price vs DMA

Current Price (₹16,784) is well above 50 DMA (₹15,529) and 200 DMA (₹14,608) — strong uptrend.

Volume: Below weekly average — suggests some cooling off.

📈 Fundamental Snapshot

P/E (118) vs Industry PE (35.6): Highly overvalued — priced for aggressive growth.

PEG Ratio (1.98): Acceptable — growth justifies valuation.

ROE (32.9%) & ROCE (39.8%): Exceptional — top-tier capital efficiency.

EPS (₹197) vs Price (₹16,784): Premium valuation.

Qtr Profit Growth (+68.3%): Very strong — earnings momentum.

FII Holding ↓ (-1.26%), DII Holding ↑ (+3.61%)**: Domestic investors bullish.

Debt to Equity (0.22): Low — manageable leverage.

Dividend Yield (0.03%): Negligible — not a swing factor.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹16,200–₹16,400 range, ideally on a pullback near 50 DMA.

Wait for RSI to cool below 65 before entering to avoid chasing.

Confirm with MACD strength and volume recovery.

🚪 Exit Strategy (If Already Holding)

Exit near ₹18,800–₹19,150, close to 52-week high resistance.

If price drops below ₹15,800, consider stop-loss at ₹15,500 to protect gains.

⚖️ Final Verdict

DIXON is a high-momentum swing trade with strong fundamentals and technicals. While valuation is steep, growth and efficiency metrics justify the premium. Ideal for short-term traders looking to ride the trend — just be cautious of RSI overheating and volume dips.

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