⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DIXON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | DIXON | Market Cap | 62,764 Cr. | Current Price | 10,342 ₹ | High / Low | 18,472 ₹ |
| Stock P/E | 84.0 | Book Value | 468 ₹ | Dividend Yield | 0.08 % | ROCE | 11.7 % |
| ROE | 8.71 % | Face Value | 2.00 ₹ | DMA 50 | 12,331 ₹ | DMA 200 | 14,341 ₹ |
| Chg in FII Hold | -2.01 % | Chg in DII Hold | 0.13 % | PAT Qtr | 187 Cr. | PAT Prev Qtr | 479 Cr. |
| RSI | 26.7 | MACD | -685 | Volume | 15,74,871 | Avg Vol 1Wk | 11,77,812 |
| Low price | 9,828 ₹ | High price | 18,472 ₹ | PEG Ratio | 72.4 | Debt to equity | 0.28 |
| 52w Index | 5.95 % | Qtr Profit Var | 7,383 % | EPS | 159 ₹ | Industry PE | 24.6 |
📊 Technical Analysis
- Chart Patterns: Stock has corrected sharply from 18,472 ₹ high to 10,342 ₹, showing a strong bearish trend.
- Moving Averages: Current price is well below 50 DMA (12,331 ₹) and 200 DMA (14,341 ₹), confirming sustained weakness.
- RSI: 26.7 — oversold zone, potential for short-term bounce.
- MACD: -685 — deep bearish crossover, momentum weak.
- Bollinger Bands: Price near lower band, oversold conditions visible.
- Volume Trends: Current volume (15.7L) is higher than 1-week average (11.8L), showing strong selling pressure.
📈 Momentum & Signals
- Short-term Momentum: Weak, but oversold RSI suggests possible relief rally.
- Support Levels: Strong support near 9,828 ₹.
- Resistance Levels: Immediate resistance at 12,331 ₹ (50 DMA), next at 14,341 ₹ (200 DMA).
- Optimal Entry Zone: 9,900–10,200 ₹ (near support).
- Optimal Exit Zone: 12,200–12,400 ₹ (near 50 DMA resistance).
- Trend Status: Stock is trending down with oversold signals suggesting possible short-term reversal.
✅ Positive
- EPS of 159 ₹ provides strong earnings visibility.
- Low debt-to-equity (0.28) ensures financial stability.
- Quarterly PAT rebound (187 Cr vs 479 Cr) shows operational resilience despite volatility.
⚠️ Limitation
- Stock P/E (84.0) is much higher than industry P/E (24.6), suggesting overvaluation.
- ROCE (11.7%) and ROE (8.71%) are modest compared to peers.
- PEG ratio (72.4) indicates extremely expensive valuation relative to growth.
📉 Company Negative News
- FII holding decreased by -2.01%, showing reduced foreign investor confidence.
- Stock has corrected heavily from 18,472 ₹ high to current 10,342 ₹.
📈 Company Positive News
- DII holding increased slightly (+0.13%), showing domestic institutional support.
- Quarterly profit variation (+7,383%) highlights strong rebound from prior weak quarter.
🏭 Industry
- Industry P/E at 24.6 is far lower than DIXON, highlighting relative overvaluation.
- Electronics manufacturing sector remains growth-oriented, supported by government initiatives and rising demand.
📝 Conclusion
- DIXON is in a downtrend with oversold RSI suggesting possible short-term rebound.
- Best strategy: Accumulate cautiously near support (9,900–10,200 ₹) and book profits near resistance (12,200–12,400 ₹).
- Long-term investors should be cautious given high valuation and modest efficiency, despite strong EPS and sector growth potential.