Can DMA perform this application?

You can also wedge your logic in between the read and write master of this DMA: http://www.altera.com/support/examples/nios2/exm-modular-scatter-gather-dma.html

Since it's all based on standard Avalon interfaces anything with ST interfaces can be placed in between the masters. I found it to be pretty easy to throw other things in between like filters, byte flippers, etc.... Just remember that Avalon-ST uses big endian symbol ordering so the byte read from offset 0 ends up being stuffed into the upper bits of the ST data. If you prefer to work on the data using little endian just flip the symbols (bytes) coming into your widget, crunch the data, flip the symbols back around before passing the data to the write master. These byte flips are just wires so they come for free.