Biocon sees build up of open interest, stock flat

NEW DELHI: Shares of Biocon were trading marginally lower on Monday, but the counter was seeing strong buildup of open interest.

At 12.20 pm, the stock was trading at Rs 976.15 on NSE, down 0.65 per cent from its previous close of Rs 982.50. Yet, the stock witnessed a 9.8 per cent surge in open interest. The scrip had risen 4.3 per cent in Friday’s session and witnessed a 12.51 per cent surge in open interest.

A rise in open interest along with a rise in the stock price is seen as a positive trend. But a rise in open interest along with flat stock price offers little outlook.

Developments on the company’s insulin pill, approvals to its formulations in regulated markets and its product pipeline are a few key reasons that have made the Street positive on Biocon, ET reported last week.

With its Malaysian facility becoming operational from the second half of the financial year, prospects of regulatory filings and approvals look bright, ET said in the report, adding that the market is anticipating a ramp-up in the company’s biologic business.