Technical Analysis

Your Stock Portfolio: Biocon in a long-term uptrend

Yoganand D | Updated on September 06, 2020 Published on September 06, 2020

Bloomberg   -  Bloomberg

Investors looking for the long haul can buy the stock in declines with a stop-loss at ₹290

Here are answers to readers’ queries on the performance of their stock holdings.

What are the prospects for Biocon?

TVS Prakash Rao

Biocon (₹420.8): After a medium-term downtrend in the first half of 2019, the stock of Biocon recorded a low at ₹212 last September, which is a 52-week low, and found support. Subsequently, the stock changed direction, triggered by positive divergence, and has been in a long-term uptrend since then. While trending up, the stock had decisively breached a key level at ₹345 in May this year and continued to trend upwards.

However, the stock marked a 52-week high at ₹455 in early July this year and began to witness a corrective decline. Taking support at around ₹375, the stock bounced up strongly, gaining over 7 per cent with good volume in the past week.

This rally has strengthened the medium as well as long-term uptrend and has potential to trend northwards. The stock trades well above its 50- and 200-day moving averages. But it faces a key resistance ahead at ₹450. An emphatic break above this barrier will underpin the long-term uptrend and take the stock northwards to ₹470 and then to ₹500 over the long run. Investors with a long-term horizon can buy the stock in declines with a stop-loss at ₹290. Immediate supports are at ₹400 and then at ₹375. On the downside, a strong fall below ₹375 can pull the stock down to ₹350 and then to ₹330 levels. Long-term uptrend will remain in place as long as the stock trades above ₹300. Next supports are at ₹280 and ₹250 levels.

What is the short and medium-term outlook for Granules India and Dishman Carbogen Amics?

Manjunatha N


Granules India (₹346): The stock of Granules India is in an uptrend across all time frames — long-, medium and short-term. On Friday, the stock jumped 6 per cent with above average volume, breaking a key resistance at ₹335. But the weekly indicators and oscillators are displaying signs of weakness and weekly RSI is displaying negative divergence, implying trend reversal is on the cards. Hence, investors with a low risk appetite can consider booking partial profit at current levels. An emphatic plunge below the medium-term base level of ₹300 can drag the stock down to ₹272 and then to ₹250 levels. Next vital supports are at ₹220 and ₹200. A decisive rally above ₹350 can take the stock higher to ₹375 and then to ₹390 levels.

Dishman Carbogen Amics (₹185.6): Since early June this year, the stock has been in a medium term uptrend. But, the stock had encountered resistance at around ₹200 in early August and moved sideways. It now faces resistance at ₹200. A conclusive break above this level can push the stock higher to ₹230 and then to ₹250 over the medium term. Conversely, if the stock slumps below ₹150, it can witness selling pressure and pull down to ₹120 and then to ₹100.

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Published on September 06, 2020
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