I am holding Biocon bought at Rs 625. Should I keep holding the same?
- Ashish Gokhale
HOLD BIOCON WITH A STOP LOSS OF RS 593
Biocon is currently trading at Rs 606.90. Its 52-week high/low stand at Rs 695/Rs 320 made on June 5, 2018 and October 3, 2017, respectively. Considering the monthly time frame, the stock corrected after hitting 52-week or all-time high levels in June and July and bounced back in August from 38.2% retracement of the upward rally from 52-week low to the peak. Considering the daily time frame, the stock has formed a rounding bottom taking support at the 200-day EMA level. The stock attempted a breakout at Rs 625 on August 28, but it could not sustain on a closing basis. However, the resurgence in volumes and the 14-period RSI at 60 suggests momentum. We suggest you to hold for now.