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Biocon (₹231)
Bears gain traction
Biocon’s stock has been in a downtrend since early 2021. It began trending down after facing resistance at ₹480. Although the fall was steady, the stock experienced some recovery this year – it rallied between April and September from about ₹200 to ₹280. However, last week’s fall has dragged the stock below a support and the price action hints that the downtrend has resumed.
In the short term, we anticipate the stock to depreciate to ₹200. That said, there might be a minor rally to ₹245. So, traders can initiate fresh short positions now at ₹231 and add more if the price moves up to ₹245. Place stop-loss at ₹262 initially. When the stock slips below ₹215, alter the stop-loss to ₹230. Liquidate the shorts at ₹200.
CONCOR (₹707.6)
Pulls back to support
The stock of Container Corporation of India (CONCOR) is on an uptrend. It established a rally in April after taking support at ₹570. In the first week of September, CONCOR’s stock moved past ₹700 and marked an eight-month high of ₹747.7. But since then, the rally lost momentum and the price softened in the last few weeks. However, the overall trend remains up and the support at ₹700 holds true.
We expect the stock to resume the upswing on the back of this support. The chart indicates that CONCOR’s share price can appreciate to ₹780. Hence, buy the stock now at about ₹708 and place initial stop-loss at ₹685. When the stock moves above ₹750, tighten the stop-loss to ₹725. Book profits at ₹780.
L&T Technology Services (₹4,310.9)
Short-term outlook bearish
Since April, the stock of L&T Technology Services is on an uptrend rebounded from the support ₹3,350. However, in the last few weeks it has largely been moving sideways as it faced a resistance at ₹4,800. Last week, it dropped below the support at ₹4,500 and closed at ₹4,310.9, turning the near-term outlook bearish.
Although there could be a price rise to ₹4,480 from the current level, the scrip will eventually resume the decline. That leg of downtrend could drag the stock to ₹4,000. So, one can sell the stock now and accumulate shorts in case the price sees an uptick to ₹4,480. Keep stop-loss at ₹4,600 initially and shift it down to ₹4,320 when the stock touches ₹4,150. Exit at ₹4,000.
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