Biocon has seen a sharp fall in price since early last week. The price band of ₹285-290 is a supply zone and the scrip declined off this region. Last Friday, it closed below the 200-day moving average, indicating that the bears have a stronger hand. The price action shows no sign of a bullish reversal and so, further depreciation is highly likely. Also, indicators like the RSI and the MACD on the daily chart implies that the downward momentum is strong.
Particularly, the chart shows that Biocon could see its price drop to ₹240 in a day or two. Hence, we suggest traders to go short on this stock now at ₹247 and on a rise to ₹249. Place stop-loss at ₹252. Liquidate the shorts at ₹240.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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