⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BIOCON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.6
| Stock Code | BIOCON | Market Cap | 60,079 Cr. | Current Price | 371 ₹ | High / Low | 425 ₹ |
| Stock P/E | 749 | Book Value | 120 ₹ | Dividend Yield | 0.14 % | ROCE | 2.09 % |
| ROE | 0.40 % | Face Value | 5.00 ₹ | DMA 50 | 380 ₹ | DMA 200 | 369 ₹ |
| Chg in FII Hold | 0.53 % | Chg in DII Hold | 2.07 % | PAT Qtr | 70.9 Cr. | PAT Prev Qtr | -8.30 Cr. |
| RSI | 42.1 | MACD | -5.81 | Volume | 67,26,340 | Avg Vol 1Wk | 35,52,045 |
| Low price | 291 ₹ | High price | 425 ₹ | PEG Ratio | -40.2 | Debt to equity | 0.16 |
| 52w Index | 59.5 % | Qtr Profit Var | 2,116 % | EPS | 5.51 ₹ | Industry PE | 29.1 |
📈 Technical Analysis
- Chart Patterns: Stock has corrected from highs (425 ₹) and is trading at 371 ₹, showing weakness and inability to sustain above resistance.
- Moving Averages: Current price is below 50 DMA (380 ₹) but slightly above 200 DMA (369 ₹), indicating short-term bearishness with medium-term support.
- RSI: At 42.1, stock is weak and approaching oversold territory, suggesting limited downside but lack of strong momentum.
- MACD: Negative (-5.81), confirming bearish momentum in the short term.
- Bollinger Bands: Price near lower band, indicating oversold conditions and potential stabilization.
- Volume Trends: Current volume (67,26,340) is higher than average weekly volume (35,52,045), showing strong selling pressure and volatility.
🎯 Momentum & Trade Zones
- Short-term Momentum: Weak, with bearish signals dominating but possible rebound near support.
- Support Levels: 369 ₹ (200 DMA), 350 ₹ (major support).
- Resistance Levels: 380 ₹ (50 DMA), 400–425 ₹ (recent highs).
- Optimal Entry: 365–370 ₹ range if RSI stabilizes.
- Optimal Exit: 390–400 ₹ unless breakout above 425 ₹ is confirmed.
📊 Trend Status
Stock is consolidating after a sharp correction, with bearish short-term signals but medium-term support intact near 369 ₹.
✅ Positive
- FII holding increased (+0.53%) and DII holding increased (+2.07%), showing investor confidence.
- Quarterly PAT improved significantly (70.9 Cr. vs -8.3 Cr. previous quarter).
- EPS at 5.51 ₹ supports earnings visibility.
- 52-week index gain of 59.5% highlights investor interest.
⚠️ Limitation
- Extremely high valuation with P/E of 749 vs industry average of 29.1.
- Low ROCE (2.09%) and ROE (0.40%).
- Dividend yield modest at 0.14%.
📉 Company Negative News
- Weak profitability metrics despite revenue growth.
- Negative PEG ratio (-40.2) indicates poor earnings growth relative to valuation.
📈 Company Positive News
- Quarterly profit turnaround (+2,116% YoY) highlights operational recovery.
- Institutional investor confidence reflected in increased FII and DII holdings.
🏭 Industry
- Biopharma sector trading at industry P/E of 29.1, far lower than Biocon’s valuation.
- Sector supported by global demand for biosimilars and healthcare innovation.
🔎 Conclusion
Biocon is technically consolidating with weak short-term momentum but medium-term support intact near 369 ₹. Traders may consider cautious entry around 365–370 ₹ with exit near 390–400 ₹. Long-term investors should wait for breakout above 425 ₹ for bullish confirmation, given extremely high valuations and weak profitability metrics.