Biocon | 175% returns | 7-year consolidation breakout

2024年8月20日

BIOCON

Monthly time frame
Breakout from 7-year consolidation
Stock riding above 20-, 50- & 200-month moving averages
RSI > 60, signaling bullish momentum
MACD crossover done and is above the 0 line, signaling bullish momentum

Weekly time frame
Stock has broken out of the orange trend line resistance after retest
Stock riding above 20-, 50- & 200-month moving averages
Golden crossover approaching (50WMA cross 200DMA)
RSI > 55, signaling bullish momentum
MACD above the 0 line, signaling bullish momentum
Volumes have been good since Feb 2024, implies heavy buying

Daily time frame
Stock has been in an uptrend (white dotted parallel channel) since Nov 2023
Stock in the process of making a higher low (Dow theory)
Stock riding above 20-, 50- & 200-day moving averages
RSI > 50, signalling bullish momentum
MACD is about to cross the 0 line, indicating momentum build up

Conclusion
Entry: 350
Stop Loss: 300
Target 1: 485
Target 2: 665
Target 3: 960

Fundamentals
Stock PE (27) = Industry PE (35) {Stock not overvalued compared to Industry}
Stock is only 2x book value, {Not overvalued}
Int Coverage = 3.52 {Ideally > 2}
CF Operations / EBIT = 0.86 {Ideal value > 1}
Earnings yield >= 6.19% {Ideal value > 5%}
Debt to equity = 0.82 {Ideal value < 1}
Promoter stake has remained consistent over the years > 50%

2024年8月30日

交易進行

Trade is active