Biocon - Past view and current Dilemma
Mis à jour
Biocon - It always had long consolidated years and the only big move since beginning was from 79rs to 200+ was way back 4 years ago. A significant 200% up in 2-3years.
More often than not, the price consolidation periods were longer than that of the up runs the stock had.
At curent levels, the volume candle of this week is shorter than that of the previous week, which in my view signifies a hesitation from traders to increase the price action. This has also resuted in some profit booking.
Given that the market for Pharma is in the uprise, there were more than few companies which hit their new 52 week highs, beating their relative previous highs again and again. Biocon stands as an exception here, as it did not capitulate on the Pharma uprise trend.
However, given that the earnings grew year on year 3.41% up and net sales standing rs 1581 cr, OI being almost close to 3.8% up AVG, if it manages to close above 375 in the upcoming week, the stock may see levels of 390-428.
To conclude, Biocon may not see a speed up in its price action and once it reaches the 428 level, we may further see another consolidation period, unless there is surprise element in store, with regards to earnings for next quarter and the next.
View: Can go long with a stop loss of 310. 1-1.5 years which it may take to see 35-45% returns.
Note: Views are personal and meant for education purpose only. I highly appreciate your comments, views or any efforts you put towards sharing knowledge on markets.
More often than not, the price consolidation periods were longer than that of the up runs the stock had.
At curent levels, the volume candle of this week is shorter than that of the previous week, which in my view signifies a hesitation from traders to increase the price action. This has also resuted in some profit booking.
Given that the market for Pharma is in the uprise, there were more than few companies which hit their new 52 week highs, beating their relative previous highs again and again. Biocon stands as an exception here, as it did not capitulate on the Pharma uprise trend.
However, given that the earnings grew year on year 3.41% up and net sales standing rs 1581 cr, OI being almost close to 3.8% up AVG, if it manages to close above 375 in the upcoming week, the stock may see levels of 390-428.
To conclude, Biocon may not see a speed up in its price action and once it reaches the 428 level, we may further see another consolidation period, unless there is surprise element in store, with regards to earnings for next quarter and the next.
View: Can go long with a stop loss of 310. 1-1.5 years which it may take to see 35-45% returns.
Note: Views are personal and meant for education purpose only. I highly appreciate your comments, views or any efforts you put towards sharing knowledge on markets.
Note
Just reiterating my previous notes on Biocon -"if it manages to close above 375 in the upcoming week, the stock may see levels of 390-428". "To conclude, Biocon may not see a speed up in its price action and once it reaches the 428 level, we may further see another consolidation period, unless there is surprise element in store, with regards to earnings for next quarter and the next.View: Can go long with a stop loss of 310. 1-1.5 years which it may take to see 35-45% returns."
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