Biocon

Biocon (BUY, above Rs384, Target Rs398): The stock had been consolidating in a range between the levels of Rs360-378 for last two weeks. On Tuesday, in a weak market, the stock broke past the upper-end of the trading range. The stock is witnessing strong accumulation at current levels, which suggest that it may eventually result into an upward breakout. Furthermore, the stock had been consolidating above its 200-DMA for last two weeks. A break above Rs340 could lead to a fresh directional move in the same direction. Keeping in mind the above-mentioned evidences, we recommend high risk traders to buy the stock above Rs384 with stop loss of Rs377 for target of Rs398.