Biocon (₹430.1)

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A sharp 2 per cent fall in the indices jolted the stock market on Tuesday and dragged almost 80 per cent of listed stocks lower. With the negative sentiment expected to prevail for now, investors with a short-term perspective can sell the stock of Biocon.

The stock had tumbled 5.4 per cent on Tuesday breaking a key support at around ₹438 levels. Since marking a new high at ₹553 in early July, the stock has been on a medium-term downtrend. The short-term trend is also down. The recent fall has strengthened these downtrends.

The stock is trading well below its 50- and 200-day moving averages. The declining daily volumes add fuel to the downtrend. The moving average convergence divergence indicator too is hovering in the negative area.

The outlook is bearish for Biocon. Sell the stock while retaining a stop-loss at ₹439 levels. Targets are ₹412 and ₹404 levels.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on December 16, 2014
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