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Dixon Tech stock tanks 14%, breaks 100-DMA after 20-mths; tech outlook here

Dixon Technologies stock is seen trading below the 100-DMA for the first time since May 2023, after the company reported its Q3 results. The stock had rallied a whopping 532% in the last 20 months.

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Rex Cano Mumbai

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Dixon Technologies stock cracked nearly 14 per cent in intra-day deals on Tuesday, a day after reporting its Q3 results.  The company reported a 77.5 per cent year-on-year (YoY) growth in Q3 consolidated profit at Rs 171.19 crore for the quarter ended December 2024 when compared with Rs 96.44 crore in the corresponding period a year ago. Sequentially, however, the company's net profit was down 56 per cent (QoQ).  Dixon Tech's consolidated revenue from operations more-than-doubled or grew by 117 per cent to Rs 10,453.68 crore in Q3FY24 as against Rs 4,818.25 crore in Q3FY24; on a QoQ basis revenue reported a 9.4 per cent dip.  The Q3 numbers beat Street expectations, with the company's Mobile and Electronics Manufacturing Services (EMS) division emerging as the primary engine for growth in Q3, according to analysts. Most brokerages, including the likes of Nuvama, Emkay, JM Financial and others, have reiterated their positive outlook on the company, and revised the stock target price upwards. READ MORE  However, in today's trading session, the Dixon Tech stock has taken a strong hit, down 13 per cent at Rs 15,271 as of 12:30 PM. The counter has seen trades of around 60,000 shares on the BSE as against the two-week average volume of around 14,000 shares.  In the process, Dixon Tech stock is seen trading below its 100-DMA (Daily Moving Average) for the first time in more than 20 months; since May 19, 2023. Post the breakout then, the stock had zoomed a massive 532 per cent or 6.3-fold to hit a high of Rs 19,117 on December 18, 2024. The 100-DMA now stands at Rs 15,507. CLICK HERE FOR THE CHART  Here's what can possibly happen next as per the technical charts:  Dixon Technologies  Current Price: Rs 15,271  Upside Potential: 10.7%  Downside Risk: 15.2%  Support: Rs 14,370  Resistance: Rs 15,507; Rs 15,683  With today's 14 per cent fall, Dixon Tech stock has declined almost 21 per cent from its peak in December. the stock is also seen trading below the other key short-term moving averages, i.e. the 20- and 50-DMAs. Further, the stock is also seen quoting below its 20-WMA (Weekly Moving Average) which stands at Rs 15,683.  ALSO READ: How to trade in Paytm, Zomato post Q3 results? Charts hint at diverse trend  Chart shows that the stock seems on course to test support around its super trend line on the weekly scale at Rs 14,370. This support shall hold the key for the medium-term outlook on the stock. As long as this support is protected, the stock can attempt a pullback and as such re-test levels of Rs 16,900 levels.  However, in case, the super trend line support is broken, the stock may witness a prolonged period of consolidation, with a risk of a likely slide towards the 200-DMA, which stands around Rs 12,950 - levels - thus implying a downside risk of 15.2 per cent from current levels. 

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First Published: Jan 21 2025 | 1:04 PM IST

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