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.

Send your queries to techtrail@thehindu.co.in

 

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on September 06, 2020
This article is closed for comments.
Please Email the Editor