Dixon Technologies shares are in a consolidation mode. The multibagger stock, which has seen a short term correction is set for a breakout, if it crosses and sutains above the Rs 17,000 mark, according to an analyst.
In terms of returns, the stock has risen 37% from its 52-week low of Rs 10,613 reached on July 23, 2024.
The EMS stock is down 18% in 2025 and fallen 2.5% in a month. In the current session, Dixon Technologies shares rose 4.39% to Rs 14,950 against the previous close of Rs 14321 on BSE. Market cap of the firm climbed to Rs 88,901 crore. Turnover climbed to Rs 92.26 crore as 0.62 lakh shares of the firm changed hands on BSE.
The relative strength index (RSI) of Dixon Technologies stands at 43.4, signaling it’s trading neither in the overbought nor in the oversold territory.
Shares of Dixon Technologies are trading higher than the 5 day, 10 day, 20 day, 100 day and lower than the 30 day, 50 day, 150 day and 200 day moving averages.
Ravi Singh, SVP – Retail Research, Religare Broking said, “The stock has corrected nearly 20% over the last month, falling from a peak of Rs 17,000 to a low of Rs 13,200, where a previously unfilled gap was located. After making a tick near the gap zone around Rs 13,300, the stock witnessed renewed buying interest and gained momentum, rising to Rs 14,800 – an upside of approximately 11%. On the weekly chart, the stock is currently encountering resistance from an upward-sloping trend line, with immediate support placed at Rs 13,200- Rs 13,000. Given the recent price action, a “buy on dips” strategy appears more prudent. Long positions can be considered near the Rs 13,500- Rs 13,700 range, with an expected upside target of Rs 14,800 to Rs 15,000 in the near term. To manage downside risk, a strict stop-loss below Rs 13,300 is advised. A decisive break below this level could lead to a breach of the ongoing consolidation zone and potentially drag the stock down toward the Rs 12,000 level.”
Global brokerage Nomura has maintained its ‘Buy’ rating and raised target price to Rs 21,409.
The country’s mobile electronics manufacturing services (EMS) industry is likely to be divided among a few key players like Dixon, DBG Technology (China), Bhagwati (unlisted), BYD (Hong Kong), UTL Neolync (unlisted), and Tata Electronics (unlisted). Of these, Dixon is likely to hold the largest market share. Dixon’s Original Design Manufacturing (ODM) partnerships, such as with Longcheer, and equity held by customers like Vivo and Transsion, help reduce customer churn risk. It also expects backward integration to strengthen client retention, noted Nomura.
Hardik Matalia, Derivative Analyst, Choice Broking said, “Structurally, the stock is in a consolidation phase, hovering near its demand zones. This suggests that while downside appears limited in the immediate term, the stock requires a decisive reversal signal to regain upward momentum. The Rs 17,000 level remains a key resistance; unless DIXON surpasses and sustains above this zone, the broader trend may continue to remain under pressure. In the near term, if Dixon manages to hold its support zone of Rs 12,800 and witnesses a strong reversal, it could stage a relief rally towards the Rs 17,000 mark. However, a failure to sustain above Rs 12,800 would confirm a breakdown and potentially lead to extended downside, as it would validate a shift into a more pronounced downtrend.”