DCX Systems: Defence stock with Rs 2,697-cr order book in recovery mode, fresh price targets & more 

Shares of defence major DCX Systems Ltd have risen 23% in six months, signalling a short-term recovery. However, the stock is still down 6% in three months. In the long term too, the DCX Systems stock has fallen 18% in a year and lost 10% in two years. The firm with Rs 2,697-cr order book has zero debt on its books. 

Despite the stock's short-term rally, the defence stock has fallen 29.34% from its 52-week high.The stock hit its 52 week high of Rs 393 on January 6, 2025. 

In the current session, DCX Systems stock rose 4% to Rs 285.75 on BSE on Monday. Market cap of DCX Systems stood at Rs 3096.54 crore on BSE. Total 0.93 lakh shares of the firm changed hands amounting to a turnover of Rs 2.62 crore.

Kunal Kamble, Sr. Technical Research Analyst at Bonanza said, "DCX Systems is displaying a Cup and Handle pattern on the daily chart, and a breakout above Rs 287 will confirm the formation and open a fresh buying opportunity. The buying volume has been consistently rising on up-days, reflecting strong accumulation by market participants. The RSI is trending upward, supporting the ongoing positive price momentum. Further, the directional indicator shows DI+ trading above DI-, confirming the uptrend, while the ADX trading above DI- signals strength in the move. Considering this setup, the stock can be bought above Rs 287 with a stop loss at Rs 274 for potential upside targets of Rs 313 and Rs 330."

Om Mehra, Technical Research Analyst, SAMCO Securities said, "DCX India is now in recovery mode after an extended corrective phase and is stabilising around the Rs 265–Rs 280 zone. The stock is trading close to its short-term averages, with the 20-EMA and 50 EMA, both acting as immediate support. It has also formed an inverse head and shoulders pattern on the daily chart, with the neckline positioned around the Rs 270 zone.

The MACD line is edging higher with convergence, while the ADX at 21 suggests that directional momentum is gradually strengthening. The volumes have picked up selectively, supporting the view of accumulation at lower levels.
The 200-SMA at Rs 290 is acting as the immediate hurdle, and sustaining above this level would signal a clear shift in momentum in favour of the bulls.

Overall, DCX India appears to be emerging from consolidation with improving momentum. Investors with a medium-to-long-term view can consider gradual accumulation at current levels, while a breakout above Rs 290 would further reinforce the uptrend."

Anand Rathi has a price target of Rs 300 on the defence stock. 

The brokerage said DCX Systems is approaching a crucial support zone between Rs 255 and  Rs 265, which has historically acted as a demand area. Recent price action shows noticeable volume-based buying emerging from the lower levels, indicating accumulation by market participants. 

"Alongside this, the MACD indicator is displaying signs of losing negative momentum, suggesting that the bearish pressure is gradually easing. This combination of technical factors points towards a potential upside move in the near term. Traders are advised to initiate fresh long positions within the Rs 266–256 range, where the risk-reward profile remains favourable. The immediate upside potential is seen towards the 300 mark, while a strict stop-loss should be maintained near Rs 240 on a daily closing basis," added the brokerage. 

Osho Krishan from Angel Broking said, "DCX Systems is gradually gaining strength from the 260-255 zone and has surged above its short-term EMAs. The counter still hovers below the 200 DSMA, placed around the 290 subzone and a decisive breakthrough could only aggravate momentum from the short term. Till then, 290-255 seems the intermediate trading range in the comparable period.

Jigar S Patel from Anand Rathi said, "Support will be at Rs 270 and resistance at Rs 285. A decisive move above the Rs 285 level may trigger a further upside of Rs 290. The expected trading range will be between Rs 270 and Rs 290 in the short-term."

Ravi Singh, SVP - Retail Research, Religare Broking said, "DCX Systems continues to exhibit a bearish trend on the weekly chart, as the prices are trading firmly within a falling channel pattern. However, on the daily chart, DCX Systems has traded above its key moving averages of 20-day and 50-day EMAs, and witnessed a pullback after forming a lower low of Rs 242, which indicates a short-term relief, and any breakout from the immediate hurdle of 290 will drag the prices towards Rs 320-325 levels, aligning with the falling trendline. On the weekly chart, the broader trend remained negative until the price decisively broke above the falling trendline and sustained above this level. On the downside, any fall below Rs 268 may trigger the downtrend and retest the immediate support zone of Rs 240- Rs 245."

Abhijeet from Tips2trades said, "DCX Systems stock price is bearish on the Daily charts with strong resistance at Rs 286. A Daily close below support of Rs 269 could lead to a target of Rs 245 in the near term."

The stock has a beta of 1.1, indicating high volatility in a year.  

In terms of technicals, the relative strength index (RSI) of DCX Systems stands at 59.7, signaling it's trading in the neither in overbought nor in the oversold territory. 

DCX Systems shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 150 day and 100 lower than the 100 day  and 200 day moving averages. 

DCX Systems is one of the leading for Electronic Systems and cable harnesses for both International and Domestic reputed customers.