Dixon Technologies Falls 3.10%: 7 Key Factors Driving the Weekly Decline

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Dixon Technologies (India) Ltd experienced a challenging week from 16 to 20 February 2026, with its stock price declining by 3.10% to close at Rs.11,061.20, underperforming the Sensex which gained 0.39% over the same period. Despite robust trading volumes and active options market participation, the stock faced sustained selling pressure amid mixed technical signals and sectoral headwinds, culminating in a cautious market stance.

Key Events This Week

16 Feb: Robust trading activity with 2.94% price gain and surge in call option volumes

17 Feb: Price decline of 0.99% amid mixed technical signals and reduced volume

18 Feb: High-value trading despite sector weakness; heavy put option activity emerges

19 Feb: Significant traded value exceeding ₹3,270 crores; put option surge continues

20 Feb: Continued heavy put option activity; stock closes down 1.56%

Week Open
Rs.11,414.70
Week Close
Rs.11,061.20
-3.10%
Week High
Rs.11,750.85
vs Sensex
-3.49%

16 February: Strong Trading Activity and Call Option Surge

Dixon Technologies began the week on a positive note, rallying 2.94% to close at Rs.11,750.85, outperforming the Sensex’s 0.70% gain. The stock recorded a substantial traded volume of 1,50,856 shares, translating into a traded value of ₹176.01 crores, marking it as one of the most actively traded equities by value. This surge was accompanied by a notable increase in call option activity, particularly at the ₹11,700 and ₹12,000 strike prices, with combined turnover exceeding ₹1984 crores in contracts. The underlying stock price aligned closely with these strike prices, signalling bullish positioning ahead of the 24 February expiry.

Technically, the stock traded above its 5-day and 20-day moving averages, suggesting short-term momentum, although it remained below longer-term averages. The Mojo Score stood at 51.0 with a Hold rating, reflecting cautious optimism amid mixed signals.

17 February: Price Correction Amid Reduced Volume

On 17 February, Dixon Technologies reversed some gains, declining 0.99% to Rs.11,634.00. Trading volume dropped significantly to 15,495 shares, indicating reduced investor participation. The Sensex continued its upward trend, gaining 0.32%, highlighting the stock’s relative weakness. Delivery volumes also decreased, signalling waning conviction among longer-term holders. The technical picture remained mixed, with the stock still above its 20-day moving average but facing resistance from shorter-term averages.

18 February: High-Value Trading Amid Sector Weakness and Put Option Activity

Despite a sectoral downturn, Dixon Technologies saw robust trading volumes of 2.62 lakh shares and a traded value of nearly ₹299.23 crores. However, the stock price fell 2.41% to Rs.11,529.60, underperforming both its sector and the Sensex. Institutional interest appeared to wane, as evidenced by a 37.41% drop in delivery volumes. Concurrently, put option activity surged, with 7,265 contracts traded at the ₹11,000 strike price, reflecting growing bearish sentiment and hedging ahead of expiry. The stock’s technical position remained fragile, trading above the 20-day moving average but below key shorter and longer-term averages.

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19 February: Record Traded Value and Continued Put Option Pressure

Dixon Technologies registered an extraordinary traded value exceeding ₹3,270 crores on 19 February, with volume reaching 2,89,801 shares. Despite this liquidity, the stock declined 2.54% to Rs.11,236.85, continuing its downward trajectory amid sector weakness. Delivery volumes rebounded strongly to 1.41 lakh shares, a 21.85% increase over the five-day average, indicating renewed investor conviction despite price softness. Put option activity remained elevated, with 6,797 contracts traded at the ₹11,000 strike price, signalling persistent bearish hedging. The stock’s technical stance remained cautious, trading above the 20-day moving average but below other key averages.

20 February: Heavy Put Option Activity and Further Price Decline

The week closed with Dixon Technologies continuing to face selling pressure, falling 1.56% to Rs.11,061.20. Put option volumes surged to 9,636 contracts at the ₹11,000 strike price, underscoring heightened bearish sentiment and hedging ahead of the imminent expiry. Delivery volumes spiked dramatically to 3.39 lakh shares, a 185.8% increase over the five-day average, reflecting active position adjustments by investors. The stock’s four-day decline of 5.8% and failure to reclaim key moving averages highlight weakening momentum. The Sensex, in contrast, posted a modest gain of 0.41%, emphasising Dixon’s relative underperformance.

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Daily Price Performance: Dixon Technologies vs Sensex

Date Stock Price Day Change Sensex Day Change
2026-02-16 Rs.11,750.85 +2.94% 36,787.89 +0.70%
2026-02-17 Rs.11,634.00 -0.99% 36,904.38 +0.32%
2026-02-18 Rs.11,529.60 -0.90% 37,062.35 +0.43%
2026-02-19 Rs.11,236.85 -2.54% 36,523.88 -1.45%
2026-02-20 Rs.11,061.20 -1.56% 36,674.32 +0.41%

Key Takeaways

Robust Trading and Liquidity: Dixon Technologies maintained high trading volumes and value throughout the week, with a peak traded value exceeding ₹3,270 crores on 19 February, underscoring strong market interest despite price declines.

Mixed Technical Signals: The stock consistently traded above its 20-day moving average but failed to surpass shorter and longer-term averages, indicating short-term support amid longer-term resistance and consolidation.

Options Market Sentiment: The week saw a shift from bullish call option activity early on to dominant put option volumes at the ₹11,000 strike price, reflecting growing caution and hedging ahead of the 24 February expiry.

Delivery Volume Fluctuations: Delivery volumes initially declined but surged sharply towards week-end, suggesting active position adjustments by institutional and retail investors amid uncertainty.

Mojo Rating and Market Cap: The Hold rating with a Mojo Score of 51.0 and a mid-cap market capitalisation around ₹68,000 crores reflect a balanced but cautious analyst stance amid sectoral headwinds.

Sectoral Challenges: The Electronics & Appliances sector faced pressure from supply chain issues and inflationary costs, contributing to Dixon’s underperformance relative to the Sensex.

Volatility Ahead of Expiry: Elevated options activity and price swings suggest potential volatility in the coming days, warranting close monitoring of support levels near ₹11,000.

Conclusion

Dixon Technologies’ performance in the week ending 20 February 2026 was marked by a clear downtrend, with the stock falling 3.10% amid a broadly positive Sensex. Despite strong liquidity and active options market participation, the stock faced sustained selling pressure driven by sectoral headwinds and mixed technical signals. The shift from bullish call option activity to heavy put option volumes at the ₹11,000 strike price highlights growing investor caution and hedging ahead of the imminent expiry. Delivery volume fluctuations further underscore the evolving market sentiment.

Investors should remain vigilant of key technical support levels and sector developments as the stock navigates this volatile phase. The Hold rating and mid-cap status suggest a balanced outlook, with risk management and close monitoring advised in the near term.

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