Highlights
- DC Infotech and Communication (NSE: DCI) dropped nearly 14% after a sharp run-up.
- The stock slipped from an intraday high of ₹475.00 to around ₹345.00.
- Price remains above the 50-day SMA, but momentum has turned volatile.
Fundamental View
DC Infotech and Communication (NSE: DCI) reported mixed but positive quarterly numbers for the December 2025 quarter. Consolidated total income stood at ₹19,650.97 lakh, while profit before tax came in at ₹830.05 lakh. Net profit was reported at ₹649.17 lakh, with earnings per share at ₹4.01.
The company continues to remain profitable, which offers some support to the broader structure. However, the sharp rise in the stock over recent sessions appears to have moved much faster than the pace of earnings growth. That may be leading to profit booking and wider swings in price.
Technical View
DC Infotech and Communication (NSE: DCI) is currently trading near ₹345.00, down 13.85% in the session. Despite the decline, the stock is still trading above its 50-day Simple Moving Average near ₹263.89, which suggests that the medium-term structure has not completely weakened.
The chart shows that the stock witnessed a steep vertical rise through March and early April before facing heavy selling near the ₹475 zone. The long upper wick and sharp intraday reversal indicate that traders booked gains aggressively after the recent rally.
Momentum indicators also point to cooling strength. The RSI has slipped to around 63.87 after recently moving into overbought territory above 70. This suggests that upward momentum has moderated and the stock may remain volatile in the near term.
Momentum Indicator
The stock had entered an overheated zone after the recent rally, but the latest decline has eased some of that pressure. Unless the price quickly regains higher levels, the stock may continue to face selling on every rebound.
Source: TradingView
Key Technical Levels
The immediate downside zone is placed between ₹300.00 and ₹275.00. A move below this area could increase pressure and lead to a deeper correction.
On the upside, the stock is likely to face a strong hurdle in the ₹400.00 to ₹475.00 range, where the latest reversal emerged.
Key Risks
- Sharp price swings may continue after the recent rally.
- Selling pressure is visible near the recent highs.
- RSI has cooled from overbought levels, showing fading momentum.
- Failure to hold above ₹300 may weaken the short-term trend.
Summary
DC Infotech and Communication (NSE: DCI) remains above its 50-day average, but the sharp reversal from ₹475 suggests that near-term momentum has weakened. The stock may need time to stabilise before attempting another move higher.
FAQs
- Why did DC Infotech and Communication share price fall today?
The stock declined after a steep rally, as traders booked profits near the ₹475 level. - Is DC Infotech and Communication still above its 50-day SMA?
Yes, the stock is trading above its 50-day SMA of around ₹263.89. - What could traders watch next?
Traders may watch whether the stock holds above ₹300 and whether it can recover back toward the ₹400 zone.