On the flipside, 13,626 is the level to watch out for. If we again slide below this support, we may see some corrective move in the concluding week of the current calendar year. Let see how things pan out because the last week of the year is generally considered a muted one in the absence of Foreign Institutional investors. This week mainly the defensive spaces like IT, Pharma and FMCG initiated the recovery, so it would be important to see what drives the market going ahead.
NSE Scrip Code – BIOCON
View – Bullish
Justification – This week’s recovery was mainly led by the marquee defensive themes and Pharma is certainly one of them. Due to this week’s smart up move, so many counters from this space registered fresh record highs. ‘BIOCON’ did not stay behind as we witnessed a good ‘price-volume’ breakout on Wednesday from the multiple resistance zone around 480. A small pull back on the following day makes it more attractive when it comes to risk-reward ratio. Looking at the upward sloping ‘RSI-Smoothened’ oscillator, we expect the stock to do extremely well after entering an uncharted territory. Hence, we recommend going long for a target of Rs 518 in coming weeks. The stop loss can be placed at Rs 458.
NSE Scrip Code – INDUSIND BANK
View – Bearish
Last Close – Rs. 852.80
– This Private bank has underperformed significantly in pre-COVID times as well. Fortunately, we witnessed some decent recovery over the past few months along with the broader market. This week, stock prices saw some decent profit booking, which was due for the recent rally. The market did well after Monday’s hiccup but this stock did not have enough strength to recover its losses. The daily chart exhibits a bearish crossover in the combination of two key short term moving averages i.e. 5 and 20. Thus, we may see some further correction in the coming week as well. Traders are advised to sell for a target of Rs.805 in coming days. The strict stop loss can be placed at Rs.874.
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