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Weekly trading ideas by Religare Broking: Buy Grasim Industries, Biocon

Biocon's stock has reached closer to immediate support zone
Buy Biocon Limited

Last Close: Rs 394.85

Initiation range: Rs 394-397

Target: Rs 425

Stop loss: Rs 380

The pharma index has been rallying for the last five months and Biocon is among the top performers. After forming a new record high in July 2020, it has been seeing profit-taking. The stock has now reached closer to immediate support zone around 380 levels. Indications are in the favor of marginal consolidation, followed by a sharp rebound. We, thus, suggest traders to accumulate in the given range.

Buy Grasim Industries Limited

Last Close: Rs 667.10

Initiation range: Rs 660-665

Target: Rs 720

Stop loss: Rs 635

Grasim has witnessed a breakout from a consolidation range of 575-645 levels, after spending nearly two months in this range. The move was accompanied by a noticeable rise in the volume, further adding to the confirmation. We strongly advise creating fresh longs in the mentioned zone.

Last Close: 2,214.35

Initiation range: Rs 2,200-2,210

Target: Rs 2,320

Stop loss: Rs 2,150

We are seeing a mixed trend within the FMCG space and Hindustan Unilever is currently witnessing consolidation while holding above the support zone of moving averages ribbon on the daily chart. The chart pattern and positioning on the indicators are pointing towards a fresh up move in the near future. 

Buy Max Financial Services Limited

Last Close: Rs 543.15

Initiation range: Rs 535-540

Target: Rs 580

Stop loss: Rs 520

Max Financial has witnessed a breakout from a flag pattern(which indicates a pause after a strong directional move) on the daily chart and is likely to retest the previous swing high around 610 soon. Traders should use any intraday dip to buy in the mentioned range.

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