SAIL, Kaynes, Dixon: How to trade these buzzing stocks? Ajit Mishra decodes

Ajit Mishra of Religare Broking expects SAIL to rally to ₹240, and Dixon Technologies past ₹13,000-mark; whereas, he cautions Kaynes Technology could crack to ₹2,500 if it breaks key support.

SAIL, Dixon Technologies and Kaynes Technology are among the buzzing stocks on the BSE and NSE on Thursday. SAIL is seen trading with gains, while Dixon and Kaynes are trading in the negative zone.  SAIL surged over 4 per cent to hit a record high after a 19-year gap at ₹209.70 in trades on Thursday. The stock has rallied close to 11 per cent thus far in May, and surged as much as 39 per cent in the last two months. SAIL is scheduled to announce its Q4 results on Friday. READ MORE  Meanwhile, Kaynes Technology plunged over 19 per cent to an intra-day low of ₹3,366 after posting weak earnings for the March quarter. The company reported a 21.5 per cent dip in net profit at ₹91.20 crore, even as its revenue from operations increased by 26.5 per cent to ₹1,242.60 crore in Q4FY26.  Domestic brokerage firm JM Financial Institutional Securities downgraded Kaynes stock to 'Reduce' from 'Buy' post Q4 results. READ MORE  On the contrary, Dixon Technologies surged nearly 10 per cent in Wednesday's trade after posting Q4 results. The stock, however, is down 2.3 per cent at ₹10,860 in today's trading session.  Analysts at Nomura have maintained a 'Buy' rating post earnings, but lowered the target price to ₹13,813 from ₹14,678 projected earlier, owing to concerns over the delay in Vivo approval and a subdued demand outlook.  ALSO READ | Dixon Technologies: Vivo JV delay, PLI expiry cloud near-term outlook  Similarly, JM Financial believes that the earnings were in line with consensus expectations, but flags that stress around high chip prices and disrupting demand outlook could limit FY27E organic growth going forward. The brokerage reiterated its 'Add' rating on the stock with a target price of ₹11,200.  Given this background here's a technical outlook on SAIL, Dixon Technologies and Kaynes Technology by Ajit Mishra, Senior VP, Research at Religare Broking. 

SAIL

Current Market Price: ₹202.60 

 

 

  Mishra highlights that SAIL has witnessed an exceptional move in the last two trading days, and now registered a multi-year breakout (a new high after 2007).  "Buying momentum seems intact at the counter, and based on the past consolidation the stock can potentially rally to ₹230-₹240 levels in the coming months," says Ajit Mishra of Religare Broking. The analyst reckons a stop loss at ₹170. 

Kaynes Technology

Current Market Price: ₹3,380 

 

  Post today's sharp decline, the chart texture for Kaynes has changed, notes Mishra. The analyst cautions that a break of ₹3,350-₹3,300 zone could trigger the next leg of fall toward ₹3,000-₹2,500 levels.  As a trading strategy, the analyst reckons a strict stop at ₹3,300 for existing long positions. Going ahead, Mishra believes pullback toward ₹3,600-₹3,700 levels can be considered as an opportunity to short the stock, with a stop at ₹3,900. 

Dixon Technologies

Current Market Price: ₹11,114 

 

  Dixon Technologies has been in a consolidation phase for the last five months, and is now showing signs of a potential reversal. If the stock manages to cross the barrier around the ₹11,500 - ₹11,700 zone, it can potentially rally past the ₹13,000-mark, says Mishra.  The analyst sees strong support for Dixon around the ₹10,000-mark. As a trading strategy, Mishra suggests buying the stock on breakout above ₹11,700 or on dips closer to ₹10,000.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.