Biocon has target of Rs 296, says Amit Gupta, Head-Derivatives -ICICI Direct.
Gupta told CNBC-TV18, "Biocon around Rs 270 has consolidated for a long time and now near 5400-5450 if somebody is betting long in the market, I think it's better to be in defenses to certain extent. In that scenario the stock that hasn't moved up, so far has a very hefty open interest built up in the future segment. Now it is possible that the sustainability of the market even around 5200-5300 levels will induce some sort of short covering into the stocks and this is where if you start finding those stocks in the market, Biocon comes into that category. This is where I have picked it up."
He further added, "I think Rs 296 could be the likely target in the stock. Another important point is it hasn't surpassed 50 DMA for a longtime, so far in the last four or five months we didn't see it surpassing that level. Rs 279 is precisely that level which it has taken out in the last couple of sessions. I think this is where the strength may start increasing the stock and from hereon it can be good value pick also."
