Mehul Kothari expects a pullback rally in Biocon, Wipro; Here's why

According to the technical analyst from Anand Rathi, BPCL and Wipro can pullback to Rs 270 and Rs 430, respectively.

BUY

Biocon

Buy Above: Rs 253

Target: Rs 270

Stop Loss: Rs 245

The stock has been highly oversold in most of the time frames. At this juncture; it is hovering near a falling trend line support and we are witnessing a hammer kind of formation on the daily chart.

A move above high of the hammer might help the stock to recover a bit in the coming sessions.

Thus, we advise traders to go long in the stock above Rs 253 with a stop loss of Rs 245.

BUY

Wipro

Buy Above: Rs 400

Target: Rs 430

Stop Loss: Rs 385

At this point in time; the stock is in consolidation phase. It is oscillating within the range of Rs 380 – Rs 400 and only a breakout or a breakdown from this range might dictate further direction for Wipro.

However, looking at the price action, we are of the opinion that there is a possibility of a bullish breakout above Rs 400 in the coming sessions.

In such scenario; it might retest Rs 430 level which is the placement of its 200-day moving average.

Thus, we advise traders to go long in the stock above Rs 400 with a stop loss of Rs 385.

(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).