DIXON - Technical Analysis

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

Technical Rating: 4.2

Here’s a sharp technical deep-dive on Dixon Technologies (DIXON) that dissects its trend, momentum cues, and tactical entry/exit zones

📈 Trend Status

Current Price: ₹16,784

Positioned well above 50 DMA (₹15,529) and 200 DMA (₹14,608) — a classic setup for a strong uptrend

Approaching overbought zone → trend may be ripe for short-term pullback

Trend Verdict: Trending strongly with some heat exhaustion

📊 Momentum Indicators

RSI: 70.7 → Entering overbought territory, signals momentum peak

MACD: 465 → Extremely bullish, rising histogram suggests strong continuation bias

Volume: 2.0L vs 4.6L avg → low volume dip despite rally, caution flag for confirmation

Together, these point to a high-momentum rally that may pause or cool temporarily.

📉 Moving Averages

DMA Level (₹) Implication

50 DMA 15,529 Major support base

200 DMA 14,608 Strong long-term floor

The stock’s current price is well-cushioned, suggesting a healthy bullish structure — unless momentum starts breaking down sharply.

📎 Bollinger Band Action

Price likely testing the upper band, showing overextension

Bands widening → volatility expanding, often precedes pullback or breakout

Watch for mean reversion signs if RSI dips back below 65.

📍 Short-Term Trade Zones

Zone Type Price Range (₹) Commentary

Entry Zone 15,900–16,300 Pullback buy zone near 50 DMA

Resistance 18,700–19,150 52W high cap; strong short-term wall

Exit Target 19,400–19,600 Speculative zone if bullish breakout

Support Zone 14,800–15,200 Re-entry zone if correction accelerates

Suggested trailing stop-loss: ₹15,750

🧾 Institutional & Fundamental Angle

DII Holding ↑ 3.61% → solid local accumulation

FII Holding ↓ 1.26% → modest trimming

Qtr PAT stable, very strong ROCE/ROE, low debt → structurally sound

Sky-high P/E (118) and PEG at 1.98 → priced for perfection, momentum-driven

🧭 Conclusion

Dixon is in a strong bullish trend, but showing early signs of overextension. Price action and indicators suggest a short-term cooldown could offer optimal re-entry zones near ₹16,000–₹16,300. Aggressive traders might ride it toward ₹19,400 if volume confirms and RSI holds. For now, trailing stop-losses and disciplined exits are crucial.

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