Quant Pick - Biocon - ICICI Securities

Recommendation

Buy Biocon in the range of Rs. 385-400
Target: Rs. 474
Stop Loss: Rs. 348
Time frame: Three months

Derivatives & Quantitative Outlook

The pharma space has shown significant resilience in the last couple of weeks amid broader market volatility. The NSE pharma index has been consolidating above its April 2019 breakdown levels of 9500 and is likely to move towards 2018 highs of 10700. Biocon has moved to its lifetime highs in current market volatility, indicating ongoing positive bias in the stock. We expect it to continue its upward momentum in the near term.

Like most stocks, open interest in Biocon has also reduced sharply during the profit booking seen in March. The OI has come down from 15 million shares to just over 5 million shares in March. However, since then, the stock has seen significant OI build-up and current OI is multi month high, despite intermediate profit booking, OI in the stock has largely remained intact suggesting long bias in the stock is still intact.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_Biocon_Jun20.pdf

Shares of BIOCON LTD. was last trading in BSE at Rs.393.65 as compared to the previous close of Rs. 396.1. The total number of shares traded during the day was 338119 in over 6280 trades.

The stock hit an intraday high of Rs. 404.5 and intraday low of 391.15. The net turnover during the day was Rs. 134780612.

Source : Equity Bulls

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