Friday, October 19, 2012

Analysis on Biocon

I need to be back by 8th October. But there was some delay in my college admission due to which I was not able to keep on updating markets. I had a constant eye over markets movement and everything went on as per my calculation. September was a good time. Most of my stock gave a 12-50% return and it was pretty good compared to last time (Nov2011) which gave 12& 35% return from 2 stocks.

It’s over a couple of days that Biocon is looking potentially good and the reason are as follows:

  • Candle-Stick Analysis: As per know we are not seeing any bullish stick forming but from last 2 days there is a positive action from market side.
  • Indicators: Both the indicators MACD as well as RSI is showing some divergence. Along with it we are seeing MACD very near to 0 line. And I personally feel that it may show some bounce.





  • Moving Average:

  1. 7DMA-Bearish
  2. 20DMA-Bearish
  3. 50DMA-Bullish
  4. 100DMA-Bullish
  5. 200DMA-Bullish
Crossovers: we have seen Golden Crossover along with that we are about to see a crossover of 100&200DMA. Most of all MA are bullish except 7&20DMA which  can be ruled out.


















  • SAR:




Conclusion: The stock is has shown a good support for 50DMA. Indicators like MACD and RSI are showing some bullish divergence. MACD is very near to its zero level and I expect some bounce. if we witness a reversal, the swing that we see will be not much more that 16%.  If the stock continue to fall  257 will stand as a good support, if not 243.

Strategy: Can take a risk to grab with a good stop-loss  





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