The stock of Biocon (₹412.8) is at a crucial juncture, though the long-term outlook remains positive. The stock finds an immediate resistance at ₹420 and a close above will lift Biocon to ₹451. A conclusive close above ₹474 will trigger a fresh rally in the stock and that could lift it to a new peak around ₹536.
On the other hand, Biocon finds an immediate support at ₹389 and a close below that can drag the stock towards ₹367. A conclusive close below ₹325 will change the outlook to negative. We expect the stock to move positively. Traders should also remember that the pharma major will declare their quarterly/annual results on April 28 and hence the stock is likely to move in a range with positive bias.
On the other hand, a profit of ₹12,995 is possible if the stock closes at or above ₹420 before expiry. We advise traders to hold the position till the expiry day or exit if the profit is achieved earlier.
Alternatively, traders with high risk appetite could also consider going long on Biocon futures. While initial stop loss can be placed at ₹403, target can be ₹420.
Follow-up: Hold Sun Pharma position, as the stock is moving on expected lines till the target is achieved.