DIXON - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.0

📉 DIXON is currently in a reversing phase, with bearish momentum indicators and price action below key moving averages.

📊 Technical Overview

• Trend Status: Reversing — price has declined from ₹19,150 to ₹15,488, with a weak 52-week index of 47.3%.
• Moving Averages: Price is below both 50 DMA (₹16,609) and 200 DMA (₹15,696), confirming short-term bearish pressure.
• RSI (33.7): Near oversold territory, indicating weak momentum and potential for a technical bounce.
• MACD (-486): Strong negative crossover supports continued bearish sentiment.
• Bollinger Bands: Price near lower band, suggesting volatility and possible short-term support.
• Volume: Slightly above average (2.34L vs 2.30L), indicating active trading despite weakness.

📌 Entry & Exit Zones

• Support Zone: ₹15,200–₹15,400 — potential entry zone if reversal signals emerge.
• Resistance Zone: ₹16,600–₹16,800 — ideal for exit or partial profit booking.
• Breakout Level: ₹17,000+ — crossing this could signal trend recovery.

✅ Positive

• Quarterly PAT surged from ₹15.9 Cr to ₹479 Cr, showing exceptional earnings momentum.
• EPS of ₹128 and strong institutional interest from DIIs (+2.25%).
• PEG ratio of 144 indicates aggressive growth expectations.

⚠️ Limitation

• Price trading below key moving averages with bearish MACD and weak RSI.
• High P/E (167) compared to industry average (26.3) suggests valuation concerns.
• ROCE (11.7%) and ROE (8.71%) are modest relative to valuation.

📰 Company Negative News

• Price has dropped significantly from its 52-week high, indicating investor caution.

🌟 Company Positive News

• Massive quarterly profit growth (728%) and rising domestic institutional interest.
• FII holdings also increased slightly (+0.14%), showing renewed foreign interest.

🏭 Industry

• Operates in electronics manufacturing and consumer devices, a sector driven by domestic demand and export potential.
• Industry P/E (26.3) is significantly lower than the stock’s, indicating a valuation premium.

🧾 Conclusion

• DIXON is technically weak in the short term with bearish indicators and declining price action.
• Entry near ₹15,200–₹15,400 only if reversal signs strengthen; watch for breakout above ₹17,000.
• Long-term investors may hold for growth potential; short-term traders should remain cautious and monitor support levels.