Dixon Technologies' market cap falls below Rs 1 lakh cr, stock down for third session; what's next?

Shares of Dixon Technologies cracked for the third straight session on Tuesday, losing 12% during the period. Dixon Technologies shares gave up the Rs 16,000 mark and fell to a low of Rs 15,984 on an intra day basis today.  The stock has fallen below the Rs 16,000 mark after two months. 

In the current session, the stock slipped 4.13% to a low of Rs 15,984 against the previous close of 16674.85 on BSE. Market cap of the firm declined to Rs 97,959 crore. In the previous session, the market cap of the firm stood at Rs 1 lakh crore. Turnover rose to Rs 37.99 crore as 0.23 lakh shares of the firm changed hands on BSE. 

Jigar S Patel from Anand Rathi said, "Support will be Rs 16,000 and resistance at Rs 17,650. A decisive move above the Rs 17,650 level may trigger a further upside of Rs 18,000. The expected trading range will be between Rs 16000 to 18,000 in the short-term." 

Kunal Kamble, Sr. Technical Research Analyst at Bonanza Portfolio said, "The stock is now close to filling the gap formed on August 18. A closing below this gap would signal a shift towards a negative trend. The level of Rs 16,238 will act as strong support at the lower end of the gap and a breakdown below this could open the downside towards Rs 15,600, followed by Rs 14,850.

Rising volumes indicate sellers’ dominance, while price action confirms the negative trend. Momentum indicators support this view — the RSI is trending southwards, and the Directional Indicator shows DI- trading above DI+. On the moving average front, the price is trading below the 9, 21, and 50EMAs, further validating the weakness."

Amruta Shinde, Research Analyst, Choice Broking said, "Dixon has been under consistent selling pressure in recent sessions, forming consecutive bearish candlesticks that indicate profit booking and a potential trend reversal. The stock recently faced resistance near the Rs 18,470 level and has declined by approximately 10%, breaking below the key support zone of Rs 17,000. It is now trading below both the 20-day and 50-day EMAs, reinforcing a weak technical outlook. From a technical standpoint, the Rs 16,460–Rs 16,200 range is expected to provide strong support, given historical buying interest, and a rebound could be anticipated if the stock stabilizes in this region. On the downside, a break below Rs 15,500 may trigger further losses. On the upside, the Rs 17,000–Rs 17,700 range now acts as a key resistance zone. Given the prevailing market sentiment, investors and traders are advised to wait for clear price action confirmation before initiating new positions."

AR Ramachandran, SEBI registered Independent analyst says, "Dixon Technologies stock price is bearish but also almost oversold on the Daily charts with strong support at Rs 15,780. Only a Daily close above the resistance of Rs 17,637 could lead to a target of Rs 18,500 in the near term."

Despite the ongoing correction, the stock is still up 32.63% from its 52 week low of Rs 12,326.60 reached on April 7 this year. 

Shares of Dixon Technologies are trading higher than the 100 day, 150 day, 200 day and lower than the 5 day, 10 day, 20 day, 30 day and 50 day moving averages, signalling the trend is moderately bearish for the market leader in its segment. 

The relative strength index (RSI) of Dixon Technologies stands at 33.6, signaling it's trading in the neither in the overbought nor in the oversold territory.

Dixon Technologies (India) is the largest home-grown design-focused and solutions company engaged in contract manufacturing products in the consumer durables, lighting and mobile phones markets in India.