DIXON - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 2.9

📊 Technical Analysis

• Chart Patterns: Price (13,266 ₹) is below both 50 DMA (14,823 ₹) and 200 DMA (15,329 ₹), indicating weakness.
• Moving Averages: Bearish bias as price trades under short-term and long-term averages.
• RSI: 37.6 → weak momentum, close to oversold territory.
• MACD: -548 → strong bearish crossover, confirming downward momentum.
• Bollinger Bands: Price near lower band, suggesting oversold conditions and potential rebound.
• Volume Trends: Current volume (5.73 Lakh) is higher than 1-week average (4.71 Lakh), showing active selling pressure.

📈 Momentum & Signals

• Short-term Momentum: Bearish bias with oversold RSI suggesting possible short-term bounce.
• Support Zones: 13,200 ₹ (near-term), 12,800 ₹ (strong support), 12,130 ₹ (52-week low).
• Resistance Zones: 14,800 ₹ (50 DMA), 15,300 ₹ (200 DMA), 16,000 ₹ (psychological resistance).
• Optimal Entry: 13,200–12,800 ₹ range if RSI dips closer to 35.
• Optimal Exit: 14,800–15,300 ₹ range unless breakout above 16,000 ₹.
• Trend Status: Stock is trending downward with oversold signals; possible consolidation near support levels.

✅ Positive

• Quarterly PAT surged to 479 Cr. from 15.9 Cr., showing strong recovery.
• DII holdings increased (+2.25%), showing strong domestic institutional confidence.
• EPS of 128 ₹ supports valuation strength.

⚠️ Limitation

• Price trading below both 50 DMA and 200 DMA, showing weakness.
• Extremely high P/E (143) compared to industry PE (28.0), indicating stretched valuation.
• ROCE (11.7%) and ROE (8.71%) are modest, limiting efficiency.
• PEG ratio (123) suggests poor growth prospects relative to valuation.

📉 Company Negative News

• Stock trading well below 52-week high (18,700 ₹), reflecting weak momentum.
• FII holdings increased only marginally (+0.14%), showing limited foreign investor confidence.

📈 Company Positive News

• Quarterly PAT growth of 728% shows strong earnings momentum.
• DII holdings increased significantly, balancing weak FII flows.
• Dividend yield, though small (0.06%), provides shareholder returns.

🏭 Industry

• Industry PE at 28.0, much lower than company PE (143), suggesting Dixon trades at a steep premium.
• Electronics manufacturing sector remains competitive with strong demand outlook but margin pressures.

🔎 Conclusion

• Stock is in a downtrend with weak technical signals and oversold RSI suggesting possible short-term bounce.
• Best entry near 13,200–12,800 ₹; exit near 14,800–15,300 ₹ unless breakout above 16,000 ₹.
• Long-term investors should be cautious due to stretched valuations despite strong quarterly earnings recovery.