Biocon can rally once above Rs 401:IIFL

MUMBAI: IIFL is of the view that charts of Biocon look bullish. The stock can stage a rally once above Rs 401, it says.

“Biocon on the line chart has signaled a breakout above decending trendline, after stock closed above Rs 395 with positive crossover in RSI.

The short term moving average of 10 DMA was also surpassed with ease and prices closed near the days high yesterday. Earlier stock had bounced back from the rising support line which held on quiet well during the volatile times.

As the amplitude of the pattern corresponds to Rs 30, a move above Rs 401 should stage rally in the counter towards Rs 430. We advise buying the stock above Rs 402 with stop loss of Rs 390 for target of Rs 424,”the report said.

Note: Trading idea valid for time-period of 1-3 days.