Although the market is trading flat for the day so far, with the benchmark Nifty 50 index quoting at 19,579, by 11:03 PM IST, one sector that is still shining even after a consistent rally in the last few days is the Nifty Pharma index.
The pharma space is turning out to be one of the strongest themes of 2023 as the index marked a new lifetime high of 15,640.05, and one of its constituents - Biocon (NS:BION) Limited has delivered a healthy breakout in today’s session.
Image Description: Daily chart of Biocon with volume bars at the bottom
Image Source: Investing.com
It is a biopharmaceutical company with a market capitalization of INR 31,228 crore and holds a weightage of 2.36% in the pharma index. The stock is garnering special love from investors as it rallied 3.08% to INR 269, surging past its horizontal resistance of INR 268. The stock had been moving in a range of INR 268 - INR 244 since July 2023 and today’s rally above the resistance will help investors gauge the future trajectory of the stock.
The volume so far has been recorded at 6.88 million shares which is 102% higher than the 10-day average volume of 3.4 million shares and we still have over 4 hours left for the session’s close. One thing to note is that INR 268 is a very strong selling zone and the stock is marginally trading above it. Hence, a better strategy would be to wait for the session’s close to see whether the stock is able to close above the hurdle or not.
Looking at the dimensions of the range, the stock seems to be heading towards INR 292, and as it is trading at the highest level of 2023, the momentum seems strong enough to take the stock there. To curb the risk, traders can look at the support zone of INR 252 to place their stop losses.
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