BIOCON - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Swing Trade Analysis for BIOCON Ltd.

Swing Trade Rating: 3.9

📈 Technical Setup

Current Price ₹398 is near its 52-week high ₹406, signaling strong recent momentum.

Above DMA 50 (₹367) and DMA 200 (₹348) → confirms bullish structure.

MACD (10.5) is positive and rising → trend remains intact.

RSI (64.5) nearing overbought → calls for caution on entry.

Volume Surge over 1-week average → solid buying interest.

🔎 Interpretation: Momentum is strong, but entry at this level may be slightly stretched. Prefer entry on a minor dip or after consolidation.

🧮 Fundamental Check

P/E (54.0) vs Industry PE (34.0) → stock is trading at a premium.

PEG Ratio (5.14) → growth not in line with high valuation; avoid chasing.

EPS ₹8.44, Book Value ₹180 → sound financial base.

ROCE (6.25%), ROE (4.76%) → weak capital efficiency.

Debt-to-Equity (0.85) → manageable debt profile.

Quarterly Profit Jump: ₹23.6 Cr → ₹330 Cr (+138%) → impressive but possibly one-off.

DII Holding ↑7.10% → strong domestic institutional backing.

🧠 Conclusion: Positive momentum and earnings rebound make it attractive, but overvaluation and low returns suggest caution.

✅ Optimal Entry Price

Ideal dip entry zone: ₹385–₹390

Entry should be accompanied by stable RSI (55–60) and MACD remaining positive.

Stop-Loss: ₹375 — below 50-DMA and volume shelf support.

🚪 Exit Strategy (If Holding Already)

Initial Target: ₹412–₹418 → marginal breakout above 52-week high.

Extended Target: ₹425–₹430 → only if supported by volume and momentum.

Once above ₹418, trail stop-loss to ₹400 to lock profits.

🔍 Final Take

BIOCON is trading with bullish momentum and renewed earnings strength, making it a candidate for a tactical swing. However, high valuation and modest ROE/ROCE urge tight risk control and avoidance of emotional chasing. Best to enter on a dip or post-breakout confirmation.

Want to compare BIOCON with peers in pharma and biotech for more efficient setups? I've got a list of swing-worthy candidates ready to share.

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