DIXON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | DIXON | Market Cap | 71,461 Cr. | Current Price | 11,753 ₹ | High / Low | 18,472 ₹ |
| Stock P/E | 94.1 | Book Value | 533 ₹ | Dividend Yield | 0.07 % | ROCE | 31.5 % |
| ROE | 28.0 % | Face Value | 2.00 ₹ | DMA 50 | 11,069 ₹ | DMA 200 | 12,484 ₹ |
| Chg in FII Hold | -0.38 % | Chg in DII Hold | -0.92 % | PAT Qtr | 77.9 Cr. | PAT Prev Qtr | 187 Cr. |
| RSI | 60.3 | MACD | 204 | Volume | 4,12,266 | Avg Vol 1Wk | 7,40,901 |
| Low price | 9,600 ₹ | High price | 18,472 ₹ | PEG Ratio | 1.78 | Debt to equity | 0.08 |
| 52w Index | 24.3 % | Qtr Profit Var | 18.6 % | EPS | 125 ₹ | Industry PE | 36.1 |
📈 Chart & Trend Analysis: DIXON is trading at ₹11,753, above its 50 DMA (₹11,069) but below its 200 DMA (₹12,484), signaling short-term strength but medium-term resistance. RSI at 60.3 indicates healthy momentum. MACD at 204 confirms strong bullish divergence. Bollinger Bands show price near the upper band, suggesting upside continuation with volatility.
🔎 Momentum Signals: Current volume (4.12L) is below the 1-week average (7.40L), showing reduced participation. Short-term momentum favors upside, but resistance near ₹12,000–₹12,200 remains critical.
🎯 Entry Zone: ₹11,600–₹11,700 (support near 50 DMA)
🚪 Exit Zone: ₹12,000–₹12,200 (resistance band)
🛑 Stop-Loss: ₹11,400 (below immediate support)
📊 Trend Status: Consolidating with bullish bias; reversal possible only if price sustains above 200 DMA with strong volume.
Positive
- Trading above 50 DMA confirms short-term bullish bias.
- Strong ROE (28.0%) and ROCE (31.5%) highlight efficiency.
- EPS of ₹125 supports valuation strength.
- Quarterly PAT variation (+18.6%) shows earnings recovery.
- Low debt-to-equity (0.08) ensures financial stability.
Limitation
- Extremely high P/E (94.1) compared to industry PE (36.1) suggests stretched valuation.
- Trading below 200 DMA indicates medium-term weakness.
- Volume below average reduces conviction in breakout potential.
- Dividend yield at 0.07% offers minimal income support.
Company Negative News
- Decline in FII holdings (-0.38%) and DII holdings (-0.92%) signals reduced institutional confidence.
- PAT dropped sequentially (₹187 Cr → ₹77.9 Cr), showing earnings pressure.
Company Positive News
- Quarterly profit variation (+18.6%) reflects rebound.
- Strong efficiency metrics (ROE/ROCE) support fundamentals.
Industry
- Industry PE at 36.1 is much lower than DIXON’s 94.1, highlighting relative overvaluation.
- Electronics manufacturing sector benefits from long-term demand but faces cyclical margin pressures.
Conclusion
⚖️ DIXON is consolidating with bullish bias, supported by short-term technicals but constrained by stretched valuations and weak medium-term trend. Entry near ₹11,600–₹11,700 with exits around ₹12,000–₹12,200 is favorable for swing trades. Long-term investors should be cautious due to high P/E despite strong efficiency and earnings recovery.
Would you like me to expand this into an electronics sector overlay comparing peers like Amber Enterprises and Syrma SGS, or keep it focused as a single DIXON swing trade report?